179d Deduction

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Understanding The 179d Deduction
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What 179d Tax Deduction Says

• It is a tax deduction that is extended to
  businesses that invest in energy efficient
  commercial building property. This investment
  must be aimed at achieving a reduction in energy
  requirements for the purposes of interior
  lighting, cooling, heating, water heating etc.
• You can qualify for deductions reaching 1.80 per
  square foot of your building for improvements in
  the energy efficiency of your existing building
  or designing new commercial buildings that
  harness the characteristics of high efficiency
  energy usage.
• The property must be located in the USA and must
  also be subject to American society for heating,
  refrigeration and air conditioning engineers
  (ASHRAE) Standard 90. 1-200.

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Which Buildings Qualify?

• Buildings utilized for commercial purposes
• Buildings used for industrial processes but
  industrial process systems are excluded from the
  deduction
• Residential properties consisting of four stories
  or more inclusive of dormitories that are
  inhabited by multi-families.
• Building primarily serving commercial uses after
  conversion from other uses.
• Unconditioned detached or attached garage spaces

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Who Benefits From This Deduction?

• The primary designer of the energy efficient
  building (constructor, architect or engineer)
  this is true only for government buildings.
• The owner of the energy efficient building
• The tenant

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How to Access the Deduction for Your New Building
Project

• Get the services of a IRS certified constructor
  or engineer in the renovation or construction
• Fill in the necessary papers that prove your
  qualification
• Forward the papers to your CPA or any other
  qualified professional who has good

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