Eide Bailly Inspired Perspectives | Energy Efficiency Tax Benefits: 179D & 45L

Course Description: If you are constructing or renovating energy efficient commercial building property (EECBP) or residential property, there are tax credits and deductions you may be eligible to receive—and the benefits may even be getting better. The Section 179D energy efficiency deduction is available to building owners or tenants paying for qualifying improvements. The deduction is worth up to $1.80 per square foot. In addition, the “designer” of government owned EECBP is eligible for the deduction. A designer creates the technical specifications for installation of the EECBP. This could include architects, engineers and contractors. The 45L is an energy efficient home tax credit. Eligible builders may qualify for up to a $2,000 per unit tax credit for the construction or renovation of energy efficient residential properties. If the Biden Tax Budget gets approved, the 179D deduction could increase to $5 per square foot and the 45L credit could increase to $2,500 and be extended an additional ten years. Learning Objectives: Outline qualification and benefits of 179D and 45L Review process to obtaining 179D and 45L Discuss anticipated changes coming from the Biden Tax Budget