Energy Savings Percentages

The REAL Deal

Welcome to the inaugural issue of The REAL Deal from the Partnership/Real Estate tax group!

 On February 24, the IRS issued Notice 2012-22, outlining the modification of the energy savings percentages used in qualifying for a partial tax code, Section 179D Deduction.  This modification is an additional set of energy savings percentages taxpayers may use to qualify for a partial tax code section 179D deduction, under permanent rule for property placed in service from February 24, 2012.

Specifically, the applicable Energy Savings Percentages provided under February 24, 2012 notice, are 25 percent for interior lighting systems, 15 percent for HVAC and hot water systems and 10 percent for building envelope.   Following is a table that summarizes the %’s applicable before and after this change.

Note – that the 179D energy deduction is currently available only for property placed in service thru12/31/2013.

Summary of Energy Savings Percentages Provided by IRS Guidance

click to enlarge

Please contact Kent Thomas or Dina Bernstein if you have any questions or require additional information

The REAL Deal is prepared by Jane M. Brewer, CPA, MST, Chair of the KatzAbosch Partnership/Real Estate Tax Group

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