Take Advantage of the Section 179D Deduction and Make Your Company More Energy-Efficient

by | Dec 30, 2013 | Finance

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Corporate tax deductions can help you reduce an obligation to the Internal Revenue Service and simultaneously translate to a smart business investment. The Section 179D deduction is specifically related to alterations that make a building more energy efficient, and people can take advantage of them when improving structures that are entirely new, or ones that are being renovated. Keep reading to get more details.

Incentives of the Section 179D Deduction

As part of the Energy Policy Act of 2005, this perk allows people to get as much as $1.80 per square foot, provided improvements made are able to reduce energy consumption by 50 percent or more. However, a person can qualify to get 60 cents to $1.20 per square foot if minimum energy savings standards are met.

Additionally, last year, the Internal Revenue Service made it easier for some buildings to at least qualify for the lower monetary deductions after lowering the percentages related to the minimum energy savings amounts.

How You Can Qualify

After reading those details, you may be feeling ready to make the leap and start improving your building. Before doing that though, it’s worthwhile to seek out a construction company that’s very knowledgeable about the specifics of the Section 179D deduction and how to help you save the maximum amounts possible.

Because an independent professional must confirm that energy reduction standards have been met as a result of the alterations, you could save time and make the process simpler by working with a company that has those individuals on staff.

Other Parties That Could Benefit

By now it should be clear how you could boot the return on investment by making your building more energy efficient. However, there are other entities that could see a peak in sales, too. Specifically, companies that manufacture energy efficient materials could see a renewed interest in the products they create, directly because of the Section 179D deduction. Currently, this tax advantage is in effect until the end of 2013, but a proposal to extend it for a longer amount of time has already reached the Senate.

It’s easy to make improvements to your building that could help you during tax season and also provide long-term advantages for reducing your utility bill. Move forward with your vision by contacting construction specialists and discussing ideas today. Visit us to read more.

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