President Donald Trump signed a major budget deal into law early Friday morning, February 9, hours after Congress voted to end a brief government shutdown overnight. This budget bill also retroactively extends numerous tax breaks that had previously expired.
The majority of the tax breaks included in the bill are renewed for one year through the end of 2017. Among these tax breaks are various provisions for energy-related tax credits and incentives. Key provisions impacting the multifamily industry include the following:
Section 45L Energy Efficiency Credits
Low-rise (three-story and below) apartment developers are eligible for a $2,000 tax credit for each new or rehabbed energy efficient dwelling unit that is first leased. Taxpayers also have the ability to amend returns to claim missed tax credits from previous years.
Section 179D Energy Efficiency Deductions
Tax deductions, not credits, of up to $1.80 per square foot for energy efficient multifamily projects (four-story and above) have been extended. Designers of government-owned buildings remain eligible for these deductions as well.
Ascent had been active in helping its clients take advantage of these energy tax credits. In the last 24 months, we have helped clients secure anywhere from $496,000 to more than $2.5 million in tax credits. Here is a video where we describe the process. If you would like to talk about these incentives, Contact us here to learn more or begin the process.
Also, if you’re curious about the budget bill or you are having trouble falling asleep, you can find and read it here Bipartisan Budget Act of 2018.