Understanding The Importance of 179D Tax Deduction Certifications

As a commercial property owner, contractor, architect or engineer you have probably heard of the requirement for independent 179D tax deduction certifications to qualify for the EPACT 2005 tax deductions. This is not something that you can do on your own nor is it something that is done by the IRS, although the certification must be completed and presented with your taxes in the correct format and using the specific software that the IRS approves.

What You Will Need To Do

As with anything you do in business becoming familiar, at least on a basic level, with the benefits of obtaining 179D tax deduction certifications is the first step. Top companies providing the service of analyzing your business and preparing the actual 179D tax deduction certifications have great information on their websites about the process and what you can reasonably expect as a deduction if you meet the requirements.

In addition the company completing your 179D tax deduction certifications will need specific information about the building. Generally they will first complete a feasibility study to determine if the building may qualify. Then, based on this study and in consultation, you can determine to move forward with a full analysis, report and preparation of the required 179D tax deduction certifications.

The Process

The firm completing the 179D tax deduction certifications will also have to complete an on-site analysis; this is required by the IRS. The on-site visit must be completed by a licensed engineer that is fully LEED (Leadership in Energy and Environmental Design) accredited. In addition the engineer and staff must also have specific additional accreditation as outlined by the IRS.

As the business owner or commercial property owner it is important to ensure that the company providing the 179D tax deduction certifications meets these professional standards. You should also only select a company that has a comprehensive Error & Omissions policy that protects you in the event of a mistake or error in data entry or calculation in preparing the certifications and reports. In addition look for a company that provides audit support should an audit be required.

A top company providing 179D tax deduction certifications works very closely with the commercial property owner, architect, engineers or others throughout the certification process. It should be an open and transparaent process that typically takes less than four weeks to complete.

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