How to Access the 179d Tax Credit for Energy Efficient Construction

The 179D tax credit is a federal incentive program that rewards businesses and building owners who make energy-efficient improvements to their buildings. This tax credit is available for qualifying commercial buildings that were placed in service after December 31, 2005.

Here are the steps to access the 179D tax credit for energy-efficient construction:

1. Determine eligibility: The first step is to determine if your building qualifies for the 179D tax credit. To qualify, the building must be a commercial building and meet certain energy efficiency requirements. The requirements vary depending on the building's size and type, as well as the type of improvements made.

2. Obtain a certification: A third-party engineer or contractor must provide a certification that the building meets the energy efficiency requirements. The certification must be done by a qualified individual who is licensed or certified as a professional engineer or contractor.

3. Claim the credit: The credit is claimed on the business's tax return. The credit is worth up to $1.80 per square foot of the building's energy-efficient improvements.

4. Consider a retroactive claim: The 179D tax credit can be claimed retroactively for up to three years. If you made energy-efficient improvements to your building in the past, you may be able to claim the credit for those improvements as well.

5. Work with a tax professional: It's important to work with a tax professional who is familiar with the 179D tax credit and can help you navigate the process. They can help you determine eligibility, obtain the necessary certification, and claim the credit on your tax return.

Overall, accessing the 179D tax credit can be a complex process, but the financial benefits can be significant for businesses that invest in energy-efficient construction.