It seems everyone is trying to be more energy-efficient these days, but now there is more incentive to install environment-friendly systems in commercial buildings: an additional tax deduction.
IRC Sec. 179D allows taxpayers to deduct the cost of energy-efficient property installed in commercial buildings, but a new notice provides an additional set of energy savings percentages: 25% for interior lighting systems, 15% for HVAC and hot water systems and 10% for the building envelope.
The new percentages are effective for property placed in service after 5/11/12. Notice 2006-52 (2006-1 CB 1175); Notice 2008-40 (2008-1 CB 725); Notice 2012-22, 2012-11 IRB.
