Today, more emphasis is placed on making everything, from buildings to appliances, more energy efficient than ever before. Not only is it widely known that the sources of energy commonly used are not unlimited, everyone is also looking to save as much money as possible. This means it is important to learn about how you can save money for your business with the Section 179 tax deduction. Before you file, you should understand who qualifies and how.
Who Qualifies?
Only certain businesses can qualify for this type of tax deduction to encourage them to save on their energy costs. Before you spend the money on your renovations, it is important to do your research to find out if your type of business will qualify for the tax deduction. In general, your business must be a commercial building of any size, an apartment building four stories high or higher or a government building. This covers a large variety of businesses, making it likely you will qualify as long as you aren’t working out of a home or other non-commercial building.
What Qualifies?
Not all energy-saving renovations will qualify you for the Section 179 tax deduction. As you work on your plan to make your business more energy efficient, you will need to learn which aspects will qualify for the deduction and which ones will not. Improving your building envelope is one way you can take advantage of this deduction. Improving HVAC and lighting efficiency will also play a vital role in how much of a deduction you will be entitled to.
Requirements
Like many other commercial tax deductions, it is essential to obtain the appropriate proof to ensure you will not be turned down for the deduction. The Section 179 deduction requires you to have a thorough inspection by a certified agency to ensure you have made the appropriate changes you are trying to claim on your taxes. These changes must also be made between December 31, 2005 and January 1, 2014 to qualify.
A full understanding of the Section 179 tax deduction is essential to ensure you will be able to qualify for it with your business. If you are relying on the money you will save with this deduction, it is important to learn who qualifies and what you can do that will qualify for the deduction before you start the process. An energy analysis and thorough inspection can help you determine if the cost and work of the project is worth the deduction in the end.
If you are in need of assistance regarding the Section 179 tax deduction for your business, visit the Walker Reid Strategies website.
