Tax Deduction for Energy-efficient Commercial Buildings

There’s a special write-off in 2022 of $1.88 per square foot (63¢ per square foot for a partial deduction) for the installation of energy-efficient property into commercial buildings. The IRS has updated some guidance for the deduction. Qualified property must be at least one of three systems: (1) lighting, (2), heating, cooling, ventilation, and hot-water systems, or (3) the building’s envelope. There are 14 steps for claiming the credit, including obtaining a certification from a qualified individual (an engineer or contractor licensed in the state in which the building is located).  #IdeaoftheDay