Source: http://www.capitalreviewgroup.com/sustainability/
Timestamp: 2013-12-11 19:47:12
Document Index: 173054002

Matched Legal Cases: ['§179', '§179', '§179', '§179', '§1331', '§179', '§179', '§179']

“With three straight monthly gains – and the past two being quite strong – it’s beginning to look like demand for design services has turned the corner,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “With 2012 winding down on an upnote, and with the national elections finally behind us, there is a general sense of optimism. However, this is balanced by a tremendous amount of anxiety and uncertainty in the marketplace, which likely means that we’ll have a few more bumps before we enter a full-blown expansion.” Key October ABI highlights:
With the introduction of the “Commercial Building Modernization Act” (S. 3591), Senators Cardin (D- MD), Snowe (R-ME), Bingaman (D- NM), and Feinstein (D-CA) are leading the way to extend and simplify the §179D tax deduction targeted at improving the energy efficiency of existing buildings as well as new construction. This bill was assigned to a congressional committee on September 20, 2012, which will consider it before possibly sending it on to the House or Senate as a whole. The bill will extend the §179D deduction, scheduled to expire at the end of 2013, through the end of 2016. The Commercial Building Modernization Act (CMBA) proposes several improvements to the original legislation that will improve the effectiveness of §179D and simplify its application. CMBA recommended improvements include measuring energy savings and improvements against the existing building’s own consumption baseline prior to the retrofit, linking the amount of the deduction to the savings achieved, and making the §179D deduction available for a broader range of real estate owners. These changes should make it attractive to complete energy efficiency projects on existing buildings as well as level the playing field for all building owners. A joint report issued by the U.S Green Building Council (USGBC), the Natural Resources Defense Council (NRDC), the Real Estate Roundtable, and the American Council for an Energy Efficient Economy estimate that more than 77,000 construction, manufacturing, and service jobs would be generated nationwide.
The Energy Policy Act was signed into law in April 2005 – the first significant energy legislation since 1992. Title XIII §1331 stated that energy efficiencies were to be encouraged through a procedure to apply tax deductions for the implementation of specific and broad based building efficiencies. The Act includes a tax deduction, known as the Energy-Efficient Commercial Buildings Tax Deduction (26 U.S.C. §179D) for investments in “energy-efficient commercial building property” designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost – or improve the performance – of new or existing commercial buildings. Section 179D includes full and partial tax deductions for investing in commercial building improvements that are designed to increase the efficiency of energy-consuming functions such as lighting and HVAC. The deduction available is up to $.60 per square foot each for lighting, HVAC, and building envelope – a potential for $1.80 per square foot if all three components/subsystems qualify.
Capital Review Group has been featured in several publications recently:
Partnership for Sustainable Communities: “Financing Energy Improvements With Tax Incentives” By Marky Moore, Capital Review Group
Facility Net: ”Section 179D Rules Mean Clock Is Ticking On EPAct Deductions” By Lindsay Audin
Automated Buildings: EnOcean Alliance and the Connection Community Interview with Graham Martin, Chairman of EnOcean Alliance
Louis Hamer, Vice President, Product Strategy for SCL Elements/CAN2GO Inc., and Chair of the EnOcean Alliance Marketing Committee By Ken Sinclair
Hotel Executive: “Tax Deductions: Application of §179D for Hotel Properties” By Margaret Moore, Founder, Capital Review Group
Noesis Energy: Blog Postings
Lexis Nexis Real Estate Community: “Grasping the Tax Opportunities for Apartment Building Owners” by Capital Review Group
In addition to the potential tax benefits available to commercial property owners through meeting the requirements of §179D of the Energy Policy Act of 2005 and performing a cost segregation study (see our blog post on this topic), hotel owners may benefit from additional tax strategies when planning energy efficiency projects. Effective Tax Strategies for Energy Efficiency in Hotel Properties