The Purpose Of IRC Section 179D

It is sometimes very difficult for business owners and leaseholders to determine if participating in a government program that provides tax deductions is really cost effective. Some of the programs in the past have created, for some businesses, more paperwork and time spent in trying to provide documentation for the program than what the actual deduction provided. The same is not true of IRC Section 179D deductions that are not just designed for a one time saving; they are much broader in scope.

What It Provides

The Internal Revenue Code (IRC) Section 179D provides the opportunity for commercial and industrial buildings to be upgraded to reduce their use of energy and help to reduce energy costs.

The total deductions offered through the IRC Section 179D can be up to $1.80 per square foot, which is divided into three different categories that include building envelope, HVAC and lighting. To qualify for the full deduction a third party, that has to be certified by the IRS, has to demonstrate through very specific documentation that a specified reduction in energy will be achieved. However, there is also the option to receive a lower deduction as long as the energy reduction is at least the minimum required in the category.

Minimal Involvement Required

Since a third party, approved by the IRS, provides the energy analysis that demonstrates the savings as well as the inspection by a qualified Engineer or approved Contractor, the obligations of the building owner or leaseholder are relatively minimal.

A top company offering the technical services needed to qualify for the IRC Section 179D will always encourage the business owner and leaseholder to be as involved as they would like to be. This is great for the professional that likes the hands-on approach but also works well for a business owner or leaseholder that may not have the time to be fully involved.

With a significant reduction in energy use in a building the benefits of the IRC Section 179D are evident. Not only will you receive the deduction for the upgrades but you will also have a much more energy efficient building going forward. This translates into lower energy costs of operation for you and greater benefits to the environment for years into the future. To know more about IRC Section 179D visit,

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