News : For Building Owners Who Made Energy Efficient Upgrades 2014 Was a Good Year

Mar 26, 2015

Originally published on Seacoast Online. 

By Craig Robert Brown

HAMPTON FALLS – If you’re a business or apartment complex owner who made substantial energy efficiency upgrades to your property last year, you will be glad to learn 2014 was a good year for reducing your taxes. On December 16, 2014, Congress passed the Tax Increase Prevention Act of 2014, which reinstated the Energy Policy Act of 2006. The reinstated act enables tax incentives for businesses and building owners for 2014. President Obama signed the bill when it was presented to him.

Congress passed the Tax Increase Prevention Act of 2014, which reinstated the Energy Policy Act of 2006. The reinstated act enables tax incentives for businesses and building owners for 2014. TIPA reenacted

a 50 percent bonus depreciation for energy efficient commercial buildings, and energy deductions.
What does that mean for business owners? According to Jeff Hiatt of Performance Business Solutions, this could be a substantial benefit to your business.

The Tax Increase Prevention Act of 2014 (TIPA) reenacted a 50 percent bonus depreciation for energy efficient commercial buildings, and energy deductions. This allows building owners to take up to $1.80 per square foot for efficiency upgrades they made during 2014. Apartment building owners could get up to a $2,000 per unit Federal Tax Credit.

Why was the Energy Policy Act ever “off the table?” It’s a puzzling question that started at its outset in 2006. At that time, the law stated that if a building owner made efficiency upgrades to buildings, he or she could take either a deduction or tax credit for having made that improvement to the building. That policy was in place until December 31, 2013 when it was supposed to “sunset,” or disappear. However, this past December, Congress decided to act as if the sunset never occurred and reenacted the policy.

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