This 3.5-minute video explains the nuances of obtaining a signature on an allocation letter.

This one-minute video explains the latest IRS ruling regarding this tax deduction.

This 3.5 minute video gives a comprehensive overview of the EPAct 179D tax deduction as it applies to the primary designer of publicly-owned properties.

Architectural firms in charge of the design of public schools, government and municipal buildings are eligible to claim the EPAct §179D tax deduction for sustainable design. This deduction was part of the Energy Policy Act of 2005 and was intended as an incentive for architects to incorporate energy-efficient building components in their designs. Until recently, firms were limited by a three-year rolling statute to claim the deduction on amended tax returns.

However, in January 2011, the IRS issued Revenue Procedure 2011-14 that provided an alternative accounting method. Rather than amending tax returns, architectural firms that have not previously taken the deduction may go back as far as 2006 and claim the deduction on their current year’s return using a Form 3115. A certification report and allocation letter must be filed with the Form 3115.

Click here to watch the replay of our recent live blog discussion on the EPAct §179D tax deduction for architectural firms structured as flow through entities.

For more information on EPAct §179D tax deductions, visit our virtual booth. http://bit.ly/hqKM2F

By Jennifer Chin, National VP of EPAct §179D Business Services

Replay this live blog discussion on the EPAct 179D tax deduction and how it applies to architects and sustainable design. http://www.itaxblog.com/2010/08/27/live-discussion-on-how-epact-179d-can-apply-to-architects/

When a government entity owns a building or project that incorporates sustainable design, it may assign the §179D tax deduction to the primary designer of the project. However, sometimes the government entity merely provides a portion of the funding for a project, which is often the case in large joint ventures such as airports, hospitals or athletic venues. However, if tax ownership resides with a private entity, the deduction belongs to the private entity. 

According to Les Schneider, attorney with Ivins, Phillips & Barker, “…it is possible that the party which holds legal title to the building is not considered the owner of the building for tax purposes…ownership of the building must be determined in the taxable year in which the expenditures are incurred that qualify for the §179D deduction.” This rule applies even if ownership shifts in a later year, as with some public/private ventures.