Published: Wednesday, 21 June 2006 11:41
Good Energy is pleased to announce its program for achieving maximum benefit from certain provisions of the Federal Energy Policy Act of 2005.
In short, there are new immediately-available tax deductions for commercial buildings.
Generally, any large scale facility improvement must be accounted for as a capital improvement. Pursuant to GAAP, capital improvements must be depreciated over a long period of time. The annual depreciation can be booked against income, reducing the amount of income tax a business must pay. If the business is an LLC or other pass-through entity, then the tax liability, (or reduction thereof), gets passed through to the membership interest owners of the LLC. The federal tax deductions allowed under the Federal Energy Policy Act of 2005 make it possible to apply the tax benefits of expensing an energy efficiency upgrade in the year the upgrade is completed, rather than over a long period of time. Following are some key considerations:
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