179D Deductions and R&D Tax Credits Extended

Is your firm ready to capture the Tax Extenders and Tax Incentives for Business now that the PATH Act has Passed?

The §179D deduction expired on December 31, 2016. However, taxpayers may still claim it for energy-efficiency projects completed during 2016. There is also a chance that this valuable provision will be renewed pursuant to bills currently under consideration by Congress. Stay tuned for the latest §179D news! 

 

With the passage of the Protecting Americans from Tax Hikes (PATH) Act, many lucrative tax provisions were either extended or made permanent parts of the tax code.  Among these, the §179D deduction for energy-efficiency measures in commercial buildings and Research and Development (R&D) Credits.  These renewals through 2016 may well provide a boon to business taxpayers.

The §179D deduction had previously lapsed on December 31, 2014, so it is now available for qualifying projects completed during the 2015 or 2016 tax years.  According to the PATH Act, qualifying projects completed during the 2015 tax year are subject to ASHRAE Standard 90.1-2001.  This is the same Standard that has applied to §179D projects in recent tax years.  However, projects completed in 2016 will be subject to the newer, more stringent ASHRAE Standard 90.1-2007.  Although the IRS has not yet issued formal guidance on how to apply §179D under the PATH Act, the new ASHRAE Standard appears to be the only significant change at this time. The deduction for system / component improvements such as HVAC, Lighting or Building envelope or combined – Whole Building may qualify for a $1.80 per square foot deduction.  

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Is your firm ready to reap the benefits?

Changes in law may generate significant confusion, and tax law tends to change frequently.  Capital Review Group (CRG) is here to help you navigate this confusion, harnessing substantial tax savings for your business through the §179D deduction and other incentives.

Ready to boost your net profit through tax savings?  Contact Capital Review Group to learn more about how your business can benefit from the PATH Act! crginfo@capitalreviewgroup.com

Review other tax saving opportunities, including:

  • Cost segregation for commercial building owners
  • Application of the tangible property regulations
  • Review of sales taxes to identify possible overpayments

Want to make sure that your firm is seizing all available opportunities to boost net profit through tax savings?  A pro bono analysis from Capital Review Group will help.  Simply complete the form below and someone will contact you within 24 hours.  For immediate assistance, email us at crginfo@capitalreviewgroup.com.

Comments or questions are welcome.

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