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Consolidated Appropriations Act, 2021 Permanently Extends EPAct 179D

With the signing of the Consolidated Appropriations Act or “CAA”, we finally have some much needed good news. While the bill helps everyone including businesses and individuals, one of the most important provisions in the bill is the permanent extension of the EPAct 179D tax deduction.

Prior to the signing of the CAA, the 179D deduction would expire before being extended for a year or two at a time. Taxpayers can now plan to use the incentive on future projects without worrying about the uncertainty of the deduction.

The bill also links the $1.80 per square foot deduction with inflation, ensuring that it doesn’t fall behind. The baseline standard for the deduction was also updated, and it now compares the building to the ASHRAE standard that was in place 2 years prior to the start of construction. This change would account for improvements in technology.

If you have any questions about the CAA or think you can benefit from the 179D tax deduction contact us anytime and we can send you a prequalification form to fill out.