What is the 179D Tax Deduction?
The 179D tax deduction is part of a federal tax code section that gives tax reducing incentives for the construction of new commercial or government buildings that are energy efficient. Sometimes, it can also be used for other buildings that are remodeled to include new energy efficient features though. It is unique in comparison to other tax credits because of the way it can give both the building 's owner and the architect who designs the structure tax incentives. Because it motivates people to choose environmentally safe building attributes, it is also sometimes called the Environmental Protection Act (EPAct). Many people have become interested in this credit because it offers a hefty tax discount of roughly $1.80 for every square foot of the building that is claimed. This can quickly reduce a person 's tax burden, especially if it is combined with other tax credits, such as the Manufacturers ' Energy Efficient Appliance credit. But, those who wish to claim the deduction must include special features that support energy efficiency. Some of them include:
- Energy efficient LED lighting
- Hot water systems that heat water only when it is needed
- Insulation and roof shingles in the building envelope that prevent energy loss
- Specialized efficient heating and air conditioning systems
How Can a Person Receive This Deduction?
To qualify for this deduction, a person must work with an engineer from an outside firm, such as Walker Reid, to