Commercial buildings in Memphis, TN should take advantage of the energy-efficient tax credit to potentially make a significant impact on the building owner’s bottom line. Commercial buildings that demonstrate a 50% reduction in energy usage qualify for a tax deduction of up to $1.88 per square foot. Both existing buildings and new construction are eligible for the 179D commercial building energy-efficiency tax deduction.

“For properties placed into service on or before December 31, 2020, the energy and power cost shall be compared with the minimum requirements of ASHRAE Standard 90.1-2007. Projects placed into service on or after January 1, 2021, shall use the most recent Standard 90.1 affirmed no later than the date that is 2 years before the date that construction of the qualifying property begins, or the date the construction permit of the qualifying property is issued.” - U.S. Department of Energy

Strategically combining energy-saving improvements to your commercial building in Memphis, TN can help meet the necessary requirements of the 179D commercial building energy-efficiency tax deduction. Window systems with better insulating properties can be paired with a smaller, more efficient heating and cooling system. Ensuring that your building is free from air leaks ensures that high-efficiency HVAC systems won’t be overworked. Maximize your return on investment by using the tax deduction to offset the cost of all improvements.

Lowering energy consumption and boosting overall efficiency is a big win for building owners and property managers in Memphis, TN. Lowering energy costs means a reduction in operating costs resulting in an increase in asset value. Energy efficiency improvements undoubtedly make your commercial building more valuable. These improvements also make your building more comfortable due to a reduction in noise pollution, less unwanted humidity, and more consistent temperatures throughout the building.

We are happy to assist you with understanding how you can take full advantage of the Consolidated Appropriations Act tax deduction. We have decades of experience in green commercial building services in Memphis, TN. Contact us today to kick off your energy efficiency consultation.