On December 20, 2019, several tax extenders were signed into law.  Among the provisions included retroactive extensions of the 45L Energy-Efficient Home Credit and 179D Energy-Efficient Commercial Buildings Deduction. These extensions had expired at the end of 2017, but with the new legislation will now end in December 2020.

What do these extensions mean for the real estate industry?

• Section 45L Energy-Efficient Home Credit: This credit up to $2,000 is eligible for low-rise apartment developers and homebuilders for each new or rehabbed energy efficient dwelling unit that is first sold or leased by the end of 2020.
• Section 179D Energy-Efficient Commercial Buildings Deduction: This tax deductions provides a benefit of up to $1.80 per square foot for energy efficient commercial building properties has been extended through the end of 2020. This deduction also applies to designers, architects, engineers or contractors of government buildings.

To retroactively amend 2018 returns and claim the 45L and 179D benefits, amended tax returns may need to be filed.

If you would like to learn more about these legislative changes, please contact Stephen Lukinovich at stephen.lukinovich@mcmcpa.com or (812) 670-3455.