Bipartisan Budget Bill Extends 179D Tax Benefits for Architects, Engineers and Contractors
February 20, 2018
While the recently passed Tax Cuts & Jobs Act benefited architects and engineers by including them in the Section 199A provision (providing 20% deduction on income), Section 179D, which provides significant benefits for design, building and modification of energy efficient buildings, was set to expire.
Thankfully, the just-passed Bipartisan Budget Bill extends the 179D tax benefits within a three-year statute of limitations through December 31, 2017. Architects, engineers and contractors who work on federal, state or local government contracts stand to reap significant benefits from this provision and should be aware of the details.
The maximum benefit of $1.80 per square foot is available for energy-efficient design for state, federal and local government buildings as well as state colleges and universities. Qualified buildings must also surpass 2007 ASHRAE standards, although this is usually part and parcel of the final building product, given today’s demand for energy efficient buildings.
Ensuring that you have all documentation in order and are applying for the deduction in an appropriate manner requires the assistance of your accounting professional. Here are four questions that we recommend you consider as you approach applying for the 179D deduction:
Smith & Howard works with many architectural, engineering and contracting businesses and routinely helps them determine their qualification for the Section 179D deduction. If you’d like more information or assistance from a member of our team with your business, please fill out the form below or call Mark Abrams, Marvin Willis or Paul Atkinson at 404-874-6244.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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