Energy efficient properties not only benefit the environment but also offer attractive tax incentives. The Section 179D deduction provides up to $5.00 per square foot in tax deductions for qualified commercial and residential buildings and upgrades, including building envelope, HVAC systems, and lighting. Owners in real estate, manufacturing, healthcare, and professionals like architects, engineers, and contractors working with government entities can benefit greatly.
Additionally, there have been Section 45L tax credits available since 2005, offering a $2,000 credit per dwelling unit. These credits can be applied retroactively to prior-year tax returns, providing cash for eligible improvements. Multifamily developments, residences, and condominiums are eligible, with significant savings for large complexes. Recent updates through the Inflation Reduction Act have increased credits to $2,500 per residential unit and up to $5,000 for homes meeting DOE (Department of Energy) Zero Energy Ready Home standards. Both incentives require certification from qualified professionals and are essential for tax practitioners working with businesses. It's crucial to understand the benefits and requirements of these incentives, including considerations for prevailing wage and apprenticeship programs in construction projects.
Learning Objectives:
- Evaluate the discussion regarding harnessing energy efficiency incentives for CPAs through 179D, 45L, prevailing wage, and apprenticeship in the Inflation Reduction Act
- Identify when to utilize sections 179D and 45L
- Outline an overview and the qualifications for the incentives
- Determine what the Inflation Reduction Act changed regarding prevailing wage and apprenticeship Regulations
- Recall real-world examples of these applications
Mark Bacon
Leyton
Practice Lead, PE
[email protected]
(617) 765-0676
Mark Bacon, PE, boasts over 17 years of experience as a Professional Engineer, specializing in energy efficiency, team leadership, sales, and operational excellence. His expertise renders him an invaluable asset in spearheading teams and instigating organizational transformations.
Mark's illustrious career is punctuated by a track record of accomplishments, particularly in collaborating on intricate, cross-functional projects and meticulously measuring outcomes to ensure optimal delivery.
Presently, Mark directs his expertise toward advancing energy efficiency within the Architecture, Engineering, and Construction (AEC) sector. His strategy involves capitalizing on tax incentives for energy-efficient constructions, overseeing myriad studies encompassing energy modeling, site inspections, and certification of results.
As a leader, Mark champions efficiency by streamlining processes and implementing industry best practices to consistently furnish clients with top-tier results. His reputation for tackling challenges head-on and surpassing expectations underscores his commitment to driving energy efficiency and innovation in the field.
Taylor Handy
Leyton
Strategic Development Manager
[email protected]
The Strategic Development team are experts in developing mutually beneficial partnerships and setting them up for success. Taylor Handy brings a wealth of expertise to her role as Strategic Development Manager at Leyton. With a robust background in venture capital with a focus on strategy and development, Taylor has excelled in various positions, leveraging her keen insights to drive growth and innovation.
Driven by a passion for partnerships, Taylor is committed to empowering businesses to achieve their strategic objectives and thrive in today's dynamic market landscape. Her dedication to excellence and client-centric approach set her apart, making her an invaluable asset to Leyton.
About Our Presenter
Leyton focuses on sectors such as Research and Development, Energy Efficiency, State and Local Tax, and more. Our team of industry experts—comprised of highly skilled engineers, scientists, tax accountants, and attorneys—develops tailored strategies to transform tax into a valuable asset.
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