Beginning January 1, 2023, the Energy Efficient Commercial Buildings Deduction is available to:
- Owners of qualified commercial buildings
- Designers of EECBP/EEBRP installed in buildings owned by specified tax-exempt entities, including certain government entities, Indian tribal governments, Alaska Native Corporations, and other tax-exempt organizations
The deduction was previously available only to owners of qualified commercial buildings and designers of EECBP installed in buildings owned by certain government entities.
EECBP must be installed on or in a building that is located in the U.S. and within the scope of a specified Reference Standard 90.1 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) and the Illuminating Engineering Society of North America. It must be property for which depreciation or amortization is allowable, and installed as part of:
- the interior lighting systems,
- the heating, cooling, ventilation, and hot water systems, or
- the building envelope.
It must be certified as being installed as part of a plan to reduce the total annual energy and power costs for the above systems by 25% or more in comparison to a reference building meeting the minimum requirements of Reference Standard 90.1.
EEBRP must be installed on or in a qualified building as part of:
- the interior lighting systems;
- the heating, cooling, ventilation, and hot water systems; or
- the building envelope.
A qualified building is a building located in the U.S. and originally placed in service not less than 5 years before the establishment of a qualified retrofit plan for the building. EEBRP must be property for which depreciation or amortization is allowable, and it must be certified as meeting certain energy saving requirements.
On Form 7205, to calculate and claim the deduction under section 179D for qualifying energy efficient commercial building property placed in service during the tax year, identify as a designer or the building owner, provide information on the person performing the certification and provide information on the person completing the allocation.
Schedule C
In TaxSlayer ProWeb, to enter the Energy Efficient Commercial Buildings Deduction on a Schedule C, from the Main Menu of the tax return (Form 1040) select:
- Federal Section
- Income
- Schedule C
- Energy Efficient Commercial Buildings Deduction
Schedule E
In TaxSlayer ProWeb, to enter the Energy Efficient Commercial Buildings Deduction on a Schedule E, from the Main Menu of the tax return (Form 1040) select:
- Federal Section
- Income
- Schedule E
- Energy Efficient Commercial Buildings Deduction
Schedule F
In TaxSlayer ProWeb, to enter the Energy Efficient Commercial Buildings Deduction on a Schedule F, from the Main Menu of the tax return (Form 1040) select:
- Federal Section
- Income
- Schedule F
- Energy Efficient Commercial Buildings Deduction
Additional Information: