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The 179D Deduction and Its Process

Posted By: alex

Everyone today is looking for ways to make everything in their lives more energy efficient. This is prevalent in the business world. The government has started rewarding those businesses that start making energy-efficient choices for their business, including changes to the lighting, heating, cooling and building envelope. Understanding how to find out if you are eligible for the 179D deduction is a key component to a successful tax deduction.

The Performance Rating Method

The first order of business is having a Performance Rating Method analysis completed. This must be done by a qualified person whom the IRS recognizes as qualified to handle the process. The individual will need to visit your building, perform an inspection and use special software to determine your eligibility.  The person who performs the analysis must be a licensed engineer and be able to prove he possesses the qualifications to handle the analysis.

The First Step

Once you find the right firm to handle your analysis, they will need to gather important information from you. This information includes your construction drawings and the knowledge of the type of systems you have, as well as an inspection of the various equipment, including your HVAC system. The individual will then need to perform an in-depth analysis on each component for which you think you might qualify for the deduction. Once the initial analysis is complete, a report will be put together determining the eligibility of your property.

Final Report

If you have not made the changes yet, you will have to have another inspection completed to determine how the changes affected your business. If you have already completed the changes, it is not too late. When you consult with a reputable firm that is qualified to handle the 179D deduction reporting, they can help you claim the deduction, if you qualify.

If you are looking for a way to save money on your energy-efficient changes, you should consult with a licensed firm to see if you qualify for the 179D deduction. This deduction was created to help businesses make energy-efficient changes, while helping offset the cost. There are several steps to the process, which makes it necessary to consult with a company as soon as possible after you make the changes. If you have not yet made the changes, you are even better off because the firm that qualifies you can also help you make the best choices, realizing the greatest return on investment.

 

For more information about the 179D deduction, visit the website of Walker Reid Strategies or call 1-800-662-179D.

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