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Energy Tax Credits for Going Green!
Real Estate Investors can now reduce the payback periods in investing in energy efficient components with the added benefit of deduction up to the entire expense of these assets immediately versus depreciating these assets over 39 years. The Energy Policy Act of 2005 (new section179d) allowed deductions for the cost of installations of energy efficient property installed in commercial bldgs……..Assets/Equipmt that may qualify: lighting, heat, cooling, ventilation & hot water systems, or bldg envelope. Currently this law is permitting owners to apply for their IMMEDIATE credits thru the end of 2008. The qualifications are that the project be placed in service 1/1/06 to 12/31/08.
We are optimistic that this will be extended to 2014.
The new materials used must reflect a 50% or greater reduction in combined energy usage. This applies to RETRO-FITS or NEW CONSTRUCTION. Upgrading systems can reap deductions from .60cents to $1.80psgf. Building must reduce total annual combined energy use by 16 2/3 per sub system (or 50% for whses).
IRS Notice 2006-52 requires that inspectors must be engineers (or lic. contractors in the jurisdiction where the bldg is sited). Inspections must meet the guidelines of the National Renewable Engineering Laboratory *The IRS requires the certification be done by a professionally licensed engineer in the state of the project. THe firm must use the required software as required by the IRS. . My firm is one of the few licensed engineering cost segregation companies that is approved by the IRS to perform Energy Credit Studies! Feel free to call me to see if you are eligible for these benefits. 727 942-9292. Dori Eden
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