In a previous article here at GRELJ, I discussed the Section 179D Energy Efficient Commercial Buildings Tax Deduction, which was extended by the Emergency Economic Stabilization Act of 2008 (again, the formal title for the $700 million federal bailout that was passed back on October 3). As I also noted previously, the Bailout also significantly expands the Business Energy Tax Credit that was previously enacted as Section 48 of the 2005 Energy Policy Act. The duration of available tax credits for solar energy, fuel cell, and microturbine installations has been extended for 8 years until December 31, 2016. The Bailout also increases the available credit amount for fuel cell installations and provides new credits for small wind energy systems, geothermal heat pumps, and combined heat and power systems. Generally speaking, in order to qualify for the Business Energy Tax Credit, the original use of the system must begin with the taxpayer, or the system must be constructed by the taxpayer. It must also meet any performance standards in effect at the time the system is acquired (such as those set forth by the manufacturer). The equipment must also be operational during the year in which the tax credit is claimed in order for the taxpayer to earn the credit. This article provides a brief overview of the available credits for each qualifying type of technology.
Tag Archives | 2005 Energy Policy Act
I had the pleasure earlier today of leading a conference call with Studley to review provisions of the Emergency Economic Stabilization Act of 2008 (the formal title for the $700 federal bailout that was passed back on October 3, referred to herein as the Bailout) relating to energy efficiency in commercial office buildings. Most of the applicable provisions of the Bailout actually extend existing tax deductions and credits, though it does provide additional incentives that I will detail in a subsequent post. Perhaps the most critical provision for commercial owners, operators, and tenants to note is the Energy Efficient Commercial Buildings Tax Deduction, which was enacted back in 2005 as Section 179D of the 2005 Energy Policy Act. Prior to the Bailout, Section 179D was slated to expire at the end of 2008, but has now been extended through December 13, 2013. In this article, I will review Section 179D in detail. A subsequent post will detail the Bailout’s significant expansion of the Business Energy Tax Credit that was previously enacted as Section 48 of the 2005 Energy Policy Act.