December 18, 2014
December 18, 2014 - PRESSADVANTAGE -
PRINCETON, NJ – Claris Energy, a New Jersey-based provider of clean energy solutions, is optimistic about the latest developments of the Energy Policy Act (EPAct) extension, especially regarding the 179D tax provision. EPAct 179D provides a tax incentive for qualified energy efficiency projects incorporated into commercial buildings.
Passed in the U.S. House Dec. 3 by a 378-46 vote, the extension, known as H.R. 5771, applies to more than 50 expired tax provisions retroactively for 2014. The bill now moves to the Senate for deliberation.
Along with energy efficiency incentives like the 179D tax deduction and 45L tax credit, HR 5771 includes a host of extenders, including state and local sales tax deductions, Bonus Depreciation, R&D Credit, the New Markets Tax Credit and Work Opportunity Tax Credit.
The bill would also allow for an extension the 15-year straight-line cost recovery for qualified leasehold improvements, restaurant building improvements and retail improvements.
While many are disappointed and frustrated with the short-term extension, Claris Energy believes any type of extension is good news for the business community at this point. Being able to use the 179D tax deductions will reward businesses who have continued to make energy efficiency improvements despite the uncertainty delays have caused.
If, and we believe when, approved by the Senate, the 179D tax deductions will apply to those companies who have improved their commercial properties with energy efficient upgrades from Jan. 1, 2006 through the end of 2014. Unfortunately, because the extension only goes through the end of 2014, companies planning energy efficient projects in 2015 face a continuing uncertainty.
Congress is expected to begin a more detailed review of tax extenders early next year, with the intent to make some incentives permanent and extend others, including 179D, for a period of time during which a comprehensive effort on tax reform can be undertaken.
Many renewable energy groups have lobbied for the 179D provision to be extended by the Senate, especially the American Wind Energy Association and the Geothermal Exchange Organization (GEO). In addition, industry groups such as “The Real Estate Roundtable”, AIA and NAESCO continue their lobbying efforts for the energy, environmental and sustainability benefits of the 179D program.
The 179D deductions specifically allows for the "immediate expensing" of up to $1.80 per square foot for qualifying energy efficiency projects, including lighting, building envelope and HVAC systems. The tax benefit applies to new construction and energy efficiency upgrades to existing facilities.
Claris Energy provides extensive information about EPAct 179D incentives for commercial and industrial building projects at http://clarisenergy.com/fs_epact-incentives.html
About Claris Energy
Led by an experienced team of energy industry professionals, Claris Energy provides turnkey solutions to support the energy management requirements of commercial and industrial clients. Its independent and customized approach to project design makes certain customers get the best solutions to meet their needs, budgets and goals. More information on Claris Energy and its services can be found at http://clarisenergy.com/contact-us.php
Contact:
Steve Nanos
609-275-8484
steve.nanos@clarisenergy.com
Claris Energy, LLC
182 Nassau St., Suite 204
Princeton, NJ 08542
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