What tax deductions are available for businesses with energy-efficient properties?
This is where cost segregation studies really begin to add up in terms of deductions. With today’s energy credits, companies can basically layer their deductions — meaning a business may claim up to a $1.80 per-square-feet tax deduction on an energy-efficient property. Deductions depend on the property’s lighting, HVAC and building envelop. Also, state and local tax deductions for energy efficiency can pay off for a conscious business — one that plans its building with a team that understands cost segregation practices. Finally, segregating a building’s components into its depreciable parts puts time on a business’s side, as far as depreciation goes. There has never been a better time to enlist in a study because there are a significant number of deduction opportunities available for businesses. ROBERT OULAHAN is a director in the Tax Strategies Group at Kreischer Miller. Contact him at (215) 441-4600 or roulahan@kmco.com.
