Spring 2013 is approaching and building owners and contractors can still take advantage of energy tax incentive extensions applicable to both residential and commercial buildings.

In a last minute deal which avoided the so called “fiscal cliff”, Congress extended the energy efficiency tax credit for homeowners, and the tax credits and deductions for contractors and owners building energy efficient homes and commercial buildings. These extensions serve as fresh incentive for initiating "Green" Energy projects

The section 45L tax credit for new and retrofitted energy efficient residential dwellings was reinstated. Owners and contractors are eligible for tax credits for up to $2000 on residential dwellings that exceed IRS energy efficiency guidelines.

Also extended were residential improvements for systems and appliances under section 25C. Homeowners are eligible for credits of 10% of the cost of certain energy efficient home improvements, up to $500, across several categories of systems and appliances under section 25C. These categories include new energy retaining windows and doors, energy efficient HVAC, water heating appliances, insulation and sealing.

As April looms large and you prepare your Federal tax return, you may find it a good move to plan your energy efficient upgrades for your home or commercial building. Energy efficient systems not only improve your property and increase your property value, they save you monthly on your utility bills. And of course you can take advantage of the federal tax credits and other programs.

In our role as Energy Consultants and a qualified RESNET certification agency, we recommend considering a whole building /system approach to energy efficient rehabilitation. An important and cost effective first step in a whole building approach is to start with sealing and insulating, improving your building envelope.

EPA estimates suggest that building owners can save up to 1/5 of their HVAC costs by air sealing and insulting the attic of their building. The most expeditious and cost effective method to reduce these costs is through spray sealing and weather stripping and caulking in order to seal the building against the elements. In addition, you will increase the comfort of your building, and create a more healthy indoor environment. You will also increase the value of your property.

As the residential and commercial real estate markets finally begin to recover from the recession this year, more building owners will take advantage of the Green Energy tax advantages. New construction to code and retro fits are going to be a part of the re-awakening of the real estate market. Make sure you take full advantage of the incentives that are available to you. 

Schultz Energy Consulting, LLC, will help you take advantage of the energy tax incentives available, under the section 45L and 179D tax codes. Make sure you contact John Schultz, at 715-340-2970, or on the website at http://schultzenergyconsulting.com/ to start your building certification process. You can potentially change your outlook for 2013 and beyond, by certifying your commercial or residential multi-unit building.

 

Section 179D Savings For Commercial Buildings
 
Commercial property owner's who have updated their buildings for green energy s=systems in any or all of the categories including lighting, HVAC and insulation of the exterior, may be eligible for section 1779D tax deduction Qualification is based on reducing projected energy expenses as a result of construction or improvements, to a level that equals 50% of 2004 energy consumption basis levels. Both commercial developers, property owners and some lease holders may qualify for the deduction under section 179D, if they improve or build their building to these standards. 
 
Tax Incentives For Energy Efficiency Building Improvements
 
As the legislation stands now, the Energy Efficiency Commercial Building Tax Deduction is in effect until the end of this year. And it was extended this January. You may qualify for from $.30 to $1.80/square foot in tax deductions simply by upgrading lighting, HVAC and or envelope properties of the building, provided the improvements occurred after August 6, 20005. Schultz Energy Consulting will provide a qualified engineer for you to determine the eligibility of your building for tax deductions under section 179D. They will perform the necessary calculations and generate the certification under IRS guidelines required for the tax deduction. Qualified building of 50,0000 square feet or larger, that are LEED certified or Energy Star rated are outstanding candidates for this tax certification. 

As you move to improve the value of your property, through energy efficiency, you may well be qualifying yourself to receive a tax deduction in arrears and going forward. Schultz Energy Consultants will help you regain that capital, so that you can reinvest it in your business. Make sure you contact Schultz, at 715-340-2970, or online at http://SchultzEnergyConsulting.Com/.

In August of 2005 George Bush signed the EPACT energy tax relief bill, establishing tax deductions for commercial buildings for certain energy efficient upgrades of systems.  Buildings with qualifying systems placed into service after January 1, 2005 may be eligible for the deduction. The legislation has been updated several time with the latest iteration taking place on January 1, 2013 as a part of the so called "fiscal cliff" legislation. 

 
These updates or efficient systems must reduce the building's total energy and power usage by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE standards, to qualify for the full deduction. An upgrade in any of the qualifying systems may enable certification for a partial deduction. Energy savings must be calculated using qualified computer software approved by the IRS. 
 
The Federal deduction, known as the 179D deduction specifically, is available primarily to the building owner, but tenants may also be eligible if they incur construction expenditures in installing qualifying equipment. In the case of a government building the tax credit may be claimed by the responsible party for installation, a design or construction contracting firm.The tax deduction is in this case taken in the year the construction is completed.
 
The IRS released interim guidance (IRS Notice 2006-52) in June 2006 to establish a process to allow taxpayers to obtain a certification that the property satisfies the energy efficiency requirements contained in the statute. IRS Notice 2008-40 was issued in March of 2008 to further clarify the rules. NREL published a report (NREL/TP-550-40228) in February 2007 which provides guidelines for the modeling and inspection of energy savings required by the statute.

Schultz Energy Consulting, LLC was created to assist both Commercial and Residential property owners to access their respective Energy Tax Deduction and Energy Tax Credits. You can contact John Schultz at http://schultzenergyconsulting.com/.

The EPAT of 2005 established energy efficiency tax deductions for qualifying commercial buildings for system energy efficiency upgrades. Commercial property owners with buildings built or retrofitted after January 1, 2006 with qualifying system efficiency may be able to take advantage of the tax deduction. The legislation has been updated several time with the latest iteration taking place on January 1, 2013 as a part of the so called "fiscal cliff" legislation.

Energy efficient system upgrades, must reduce the energy usage of the building by 50% or more compared to a building meeting the ASHRAE minimum standards for qualification. You can qualify for a partial deduction for efficiencies in any individual system specified. The IRS requires the certifying engineer to use approved software to make the energy savings calculations.

The Federal deduction, known as the 179D deduction specifically, Is usually claimed by the building owner, but the tenant may have a claim if he/she incurs costs associated with installing qualifying energy efficient systems. In the case of a government building the tax credit may be claimed by the responsible party for installation, a design or construction contracting firm.In government building the tax deduction is taken in the tax year in which construction is completed.

The IRS released interim guidance (IRS Notice 2006-52) in June 2006 to establish a process to allow taxpayers to obtain a certification that the property satisfies the energy efficiency requirements contained in the statute. IRS Notice 2008-40 was issued in March of 2008 to further clarify the rules. NREL published a report (NREL/TP-550-40228) in February 2007 which provides guidelines for the modeling and inspection of energy savings required by the statute.

Schultz Energy Consulting, LLC was created to assist both Commercial and Residential property owners to access their respective Energy Tax Deduction and Energy Tax Credits. You can contact John Schultz at http://schultzenergyconsulting.com/.

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