IRS Updates 179D Guidance with Refined Expectations
The Internal Revenue Service (IRS) recently updated its Large Business & International (LB&I) Process Unit guidance concerning the 179D Tax Deduction. Following the introduction of Form 7205, the IRS continues to sharpen its focus on 179D, and choosing the right provider matters more than ever. The latest LB&I guidance provides critical insights into how claims … Read More
Trump’s Pledge to Repeal Green Energy Incentives Faces GOP Resistance
By Jonathan Tucker | Principal, Research & Development Tax Credits There are developments within the Republican Party, as 21 House Republicans have urged President Trump and House Speaker Mike Johnson (R-Louisiana) not to repeal specific green tax incentives established under the Inflation Reduction Act (IRA) of 2022, enacted during President Biden’s administration. These lawmakers emphasize … Read More
Consider 179D Now In Case Tax Reform Reduces the Benefit
By Jesse Stanley | Principal, Green Building Tax Incentives As policymakers continue to discuss tax priorities, 179D candidates—particularly architects, engineers, and other designers—face growing uncertainty around the future of this powerful deduction. With potential legislation threatening to scale back benefits, design professionals who rely on 179D to demonstrate value and reduce taxable income should consider acting … Read More
Leveraging 179D to Strengthen Relationships in the Design Community
By Jillian Jones | Director, Green Building Tax Incentives The 179D Tax Deduction is a powerful tax incentive for architects, engineers, and designers working to improve energy-efficiency in government, nonprofit, and other tax-exempt buildings. However, when it comes to allocating the deduction to the designers, tax-exempt entities have historically done so on a first-come, first-served basis, creating … Read More
45X Advanced Manufacturing Production Credit Regulations Update
By Jonathan Tucker | Principal – R&D Tax Credits Republican Senators Tom Cotton (R-AR) and Rick Scott (R-FL) have introduced a resolution (S.J.Res. 119) to overturn final regulations (TD 10010) implementing the Section 45X Advanced Manufacturing Production Credit, a green energy tax incentive created by the Inflation Reduction Act. This mirrors a bipartisan House resolution … Read More
KBKG Joins Organization to Advocate for Architects
KBKG Principal Jesse Stanley has joined the Real Estate Roundtable’s Sustainability Committee. Stanley joins other KBKG principals involved in the organization, adding to KBKG’s influence in developing legislation for a more sustainable future. The Real Estate Roundtable is an association that represents the commercial real estate industry and established the Sustainability Committee to address the … Read More
ASHRAE Standards for Energy-Efficient Buildings
The 179D Tax Deduction offers significant financial rewards for designers who reach specific energy-efficiency benchmarks defined by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) on their designs of government-owned or tax-exempt buildings. ASHRAE 90.1 determines the energy-efficiency criteria that designers need to meet to reap the benefits of 179D. Currently, the required … Read More
Expanded 45L Tax Credits Boost Affordable Housing Development
Expanded 45L Tax Credits Boost Affordable Housing Development The Inflation Reduction Act (IRA) has ushered in a significant expansion of the 45L Tax Credit, providing a substantial boost to affordable housing developers. These tax credits have seen an impressive increase, now offering up to $5,000 per unit – nearly a threefold jump from previous amounts. … Read More
Why Allocation Letters are Needed to Claim 179D
By Jillian Jones, Director – Green Building Tax Incentives Architects and designers play a crucial role in creating energy-efficient, tax-exempt buildings, and many need to be made aware of how the government rewards those that contribute to constructing energy-efficient projects with various Green Building Tax Incentives. Through programs like 179D Tax Deduction, eligible candidates can … Read More
Green Building Tax Incentives and The IRA’s Expanded Benefits
Green Building Tax Incentives and the IRA’s Expanded Benefits Building a Greener Future: how commercial building owners, multifamily developers, and designers can benefit With a goal of substantially reducing greenhouse gas emissions by 2030, the federal government has expanded a series of Green Building Tax Incentives. These initiatives represent a crucial step in the larger effort to … Read More
Optimizing Tax Benefits Through Green Building Tax Incentives
Optimizing Tax Benefits Through Green Building Tax Incentives A guide on how claiming Green Building Tax Incentives results in additional tax benefits With more building owners and designers constructing commercial and residential buildings that meet the energy-efficiency standards to qualify a project for Green Building Tax Incentives, candidates should also know what other opportunities for … Read More
Prevailing Wages and Green Building Tax Incentives
Prevailing Wages and Green Building Tax Incentives A guide on how paying prevailing wages impacts Green Building Tax Incentives Taking advantage of Green Building Tax Incentives has proven to be a financially viable way to reduce one’s tax burden when constructing or designing sustainable and environmentally friendly buildings. While the signing of the Inflation Reduction … Read More
Top Five Questions Architects Ask About 179D
Top Five Questions Designers Ask About 179D Designers’ role in reducing the carbon footprint has left many wondering where the incentive behind designing energy-efficient buildings has come from. This recent push results from the 179D Tax Deduction, a program the U.S. government introduced as part of the Energy Policy Act (EPAct) to encourage architects to … Read More
Why KBKG is Your Trusted Partner for 179D
Why KBKG is Your Trusted Partner for 179D Partnering with an experienced provider whose reputation for upholding ethical standards is invaluable. For years, KBKG’s knowledge and expertise have educated architects and designers on some of the most complex issues of the U.S. tax code to help them save money on taxes through the 179D Tax … Read More
This Month’s Webinars
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email [email protected]. Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
KBKG to Attend and Exhibit at the UCLA Tax Controversy Conference
Attending the UCLA Tax Controversy Conference is our CEO, Gian Pazzia, Principals, Jason Melillo and Kevin Zolriasatain, alongside our Director, Lon O’Connor, Chau Pham, and Lee Melbourne-Weaver. This event takes place on Thursday, October 27th at the Beverly Hills Hotel in Los, Angeles. About the Event UCLA Extension’s Annual Tax Controversy Conference is the preeminent … Read More
KBKG to Exhibit ACEC Fall Conference
Attending the ACEC Fall Conference is Regional Director, Andy Gerstenhaber and Senior Business Development Consultant, Karla North who will represent KBKG at the event, which takes place October 16th-18th in Colorado Springs, Colorado. About the Event ACEC’s Fall Conference is the premier industry event with the largest gathering of buyers and decision-makers from engineering firms … Read More
Inflation Reduction Act Signed by President Biden: Increases 179D Benefits for Architects, Engineers, Design Build Contractors, and More
President Biden signed the Inflation Reduction Act into law, minting a historic climate bill with aims to reduce carbon emissions by 40% by 2030 among many major economic initiatives. Within the 700+ page bill, the Inflation Reduction Act includes significant tax incentive opportunities which expand 179D Deductions for Architects, Engineers, Design Build Contractors, and other … Read More
How the Inflation Reduction Act of 2022 Expands Energy Efficiency Tax Incentives for the Real Estate Industry
As featured in Accounting Today On Tuesday, August 16, 2022, President Biden signed the Inflation Reduction Act. Both existing and expired energy efficiency tax incentives including 179D Deductions and 45L Credits have been expanded significantly. Who Benefits? Commercial Building Owners Multifamily Building Owners Investors Developers Homebuilders Architects Engineers Design/Build Contractors Other designers and builders Increase … Read More
Inflation Reduction Act of 2022
After months of negotiations, Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D- W. Va., reached a deal to move forward on a pared-down reconciliation bill on climate and taxes. The bill, titled the Inflation Reduction Act of 2022, aims to do the following: Reduce the deficit Invest in domestic energy production and … Read More
KBKG Tax Insight: IRS Releases Updated Practice Unit on 179D Deduction, Impacting Designers of Government Owned Buildings
As featured in Accounting Today On Friday, June 24, 2022, the IRS Large Business and International (LB&I) Division released an updated 53-page Practice Unit on the Section 179D Energy Efficient Commercial Building Deduction. The purpose of this Practice Unit is to serve as a job aid and as a training manual on 179D tax deductions … Read More
Three Tax Saving Strategies for Architecture & Engineering Firms
Architecture and engineering firms that are not claiming R&D Tax Credits, Employee Retention Tax Credits, or 179D are potentially leaving millions of dollars in tax benefits on the table each year. What are these benefits, and what cash flow is being overlooked? R&D Tax Credit Architecture and engineering firms may want to take another look … Read More
How Two Andersen Alumni Help Thousands of Businesses Secure Overlooked Tax Incentives to Improve their Bottom Line
The following article is featured on Andersen Alumni. Former alumni Gian Pazzia and CJ Aberin live by the Arthur Andersen motto: Think Straight, Talk Straight. As founding partners of KBKG, one of the largest independent specialty tax firms in the country, they have worked to preserve that legacy both professionally and personally. While both Gian … Read More
Energy Efficient Tax Incentives including 45L Credits and 179D Deductions Expanded in the Moving Forward Act
The House of Representatives have advanced the Moving Forward Act, a $1.5 Trillion infrastructure proposal. The purpose of the plan is to focus more closely on ways to reduce emissions, develop public land, improve communities and transit systems, among other key features. The Moving Forward Act includes the new energy efficient home credit (45L) extending … Read More
KBKG Tax Insight: Energy Efficiency Tax Incentives Renewed Retroactively from 2018 through 2020
On Friday, December 20th, President Trump signed and enacted a $1.4 trillion spending package that funds the government for the 2020 fiscal year, averting a second government shutdown for 2019. Included in the spending bills are numerous tax extenders, including many that had originally expired at the end of 2017. Among these tax breaks are … Read More
2019 Legislative Tax Updates for Real Estate
For the most up-to-date information on Qualified Improvement Property, see our latest post. Our technical team has been keeping tabs on the latest updates on the Hill in regard to tax extenders and technical corrections, given how they may impact 45L Tax Credits and 179D Deductions and the cost recovery of Qualified Improvement Property for … Read More
![[WEBINAR] Tax Legislative Outlook for Real Estate](https://www.kbkg.com/wp-content/uploads/Copy-of-Tax-Legislative-Outlook-for-Real-Estate.jpg "[WEBINAR] Tax Legislative Outlook for Real Estate")
[WEBINAR] Tax Legislative Outlook for Real Estate
Our technical team at KBKG has been working with those in DC who endeavor to bring more certainty to the real estate industry. Tax extenders and technical corrections to tax reform such as the “retail glitch,” still need to be addressed, but there has been movement. As Congress continues negotiations on appropriations, a stage has … Read More
KBKG Tax Insight: Congressional Letter Urges Year End Clean Energy Tax Policies
Yesterday, a letter signed by over 70% of House Democrats was delivered to Speaker Nancy Pelosi and House Majority Leader Steny Hoyer urging them to prioritize the inclusion of clean energy tax policies in negotiations around must-pass legislation this year. As the House Ways and Means Committee takes action on a clean energy tax package, … Read More
KBKG Tax Insight: Bipartisan Bill Proposes Retroactive Extension and Updates to 45L Tax Credit Through 2022
Senators Maggie Hassan (D-NH) and Susan Collins (R-ME), as well as United States Representatives Jimmy Gomez (D-CA) and Mike Kelly (R-PA), introduced the bipartisan New Home Energy Efficiency Act to extend the 45L Tax Credit. The bill proposes to retroactively extend the $2,000 credit per home from 2018 through 2020. Additionally, starting in 2021, the … Read More
BREAKING NEWS: Senate Finance Committee Launching Bipartisan Taskforces on Tax Extenders Including Green Building Tax Incentives
Update as of 5/23/2019: The House Ways and Means Committee is currently putting together a package to address tax extenders such as the 45L tax credit and 179D tax deduction. Currently, a markup on tax extenders is expected sometime in June. BREAKING NEWS from 5/15/2019: The Senate Finance Committee launched bipartisan taskforces to address tax … Read More
Tax Insight: Senate and House Updates on Tax Extenders for 2018-2019
Senate Update Last Thursday, February 28, 2019, Senate Finance Committee Chairman Chuck Grassley (R. Iowa) and Ranking Member Ron Wyden (D. Oregon) introduced bipartisan legislation to retroactively extend tax extenders for 2018 and 2019 while also providing disaster tax relief benefits to those affected by major disasters in 2018. “Congress needs to get out of … Read More
Tax Insight: Tax Extender Update from Senator Chuck Grassley
On Thursday, February 14, 2019, Senate Finance Committee Chairman Chuck Grassley (R. Iowa) addressed tax policy and various provisions that KBKG and the Real Estate Roundtable have been monitoring closely. In his speech, Senator Grassley expressed his commitment to pursue tax extenders and rejection of press reports suggesting that some provisions may no longer be … Read More
Impact of the Government Shutdown on Real Estate Tax Policy
The longest government shutdown in U.S. history is creating more uncertainty for the current and future tax landscape. As the border wall standoff delays guidance necessary to properly implement tax reform, taxpayers are left wondering how to timely file their 2018 tax returns without ultimately having to amend down the road. Congress currently hasn’t been … Read More
KBKG Tax Insight: 179D Energy Efficiency Deductions Extended through 2017
The 179D energy efficiency tax deduction has been extended retroactively for improvements completed by the end of 2017. This financial incentive is geared towards: 1) building owners (commercial or multifamily), 2) tenants making improvements, and 3) architects, engineers, and other designers of government buildings. The tax deduction is worth up to $5.00 / square foot … Read More
45L: The Energy Efficient Home Credit – Extended through 2017
Homebuilders and multi-family developers have a unique opportunity to capitalize on an energy efficient home credit that is often overlooked. Low-rise apartment developers and homebuilders are eligible for a $2,000 tax credit for each new or rehabbed energy efficient dwelling unit that is first leased or sold by the end of 2017. Taxpayers also have … Read More
KBKG Tax Insight: Congress Retroactively Extends Temporary Tax Breaks for 2017 in Budget Bill
President Trump just signed and enacted a 2-year budget bill that extends government funding through March 23 and also retroactively extends numerous tax breaks that had previously expired. The majority of the tax extenders included in the bill are renewed for one year through the end of 2017. Among these tax breaks are various provisions … Read More
KBKG Tax Insight: Can You Claim 45L Tax Credits Retroactively?
Yes, 45L tax credits can be claimed retroactively if they have been missed on prior tax returns. Since 45L tax credits are triggered in the year that a dwelling unit is first leased or sold, some taxpayers incorrectly think that the tax credits need to be claimed timely on current year tax returns. In reality, … Read More
45L: The Energy Efficient Home Credit – Infographic
Homebuilders and multi-family developers have a unique opportunity to capitalize on an energy efficient home credit that is often overlooked. The 45L Tax Credit offers $2,000 per qualified dwelling unit that can also be claimed retroactively if missed in prior years; however, the clock is ticking. There is a limited timeframe for claiming missed credits, … Read More
Affordable Housing Developers & Investors are Often Missing Out on $2,000 per Unit
Affordable housing developers benefit from various tax credits from Low-Income Housing Tax Credits to Rehab Credits yet they still fail to claim a tax credit that is often geared towards their developments: the Section 45L Tax Credit. Section 45L is a commonly overlooked section of the tax code that rewards energy efficient dwelling units with … Read More
45L Tax Credit study 58 units apartments Texas
KBKG performed a 45L Tax Credit energy analysis on a Texas residential complex and found that 12 of the 31 dwelling units sold in 2012 and 15 of the 27 dwelling units sold in 2013 provided a level of heating and cooling energy consumption that is at least 50 percent below that of a reference … Read More
45L Tax Credit study 56 units apartments Los Angeles California
Summary: 56 units. Apartment complex. 12 buildings. All 56 units qualified. Results: Section 45L Tax Credits for 2011 = $112,000Details: 12 buildings, 56 units apartments located in Los Angeles, California. The apartments is a 56-unit complex comprised of 12 buildings that are each no more than 3 stories above grade. 56 dwelling units were leased … Read More
45L Tax Credit study 56 units apartments Bakersfield California
Summary: 56 units. Apartment complex. All 56 units passed. Results: Section 45L Tax Credits for 2011 = $112,000Details: The apartments located in Bakersfield, California is a 56-unit residential complex comprised of 6 buildings that are each no more than 3 stories above grade. 56 dwelling units were leased to residents in 2011.The apartment property in … Read More
45L Tax Credit study 91 units apartments Panorama City California
Summary: 91 units. Apartment complex Results: Section 45L Tax Credits for 2011 = $196,000.Details: The 98-unit senior apartment complex in Panorama City, California, comprised of 2 buildings that are each no more than 3 stories above grade. 98 dwelling units were leased to residents in 2011. The property is located in Climate Zone 3B as … Read More
45L Tax Credit study 81 units apartments Selma California
Summary: 81 units. Apartment complex Results: Section 45L Tax Credits for 2011 = $162,000.Details: The apartment complex in Selma, California is an 81-unit residential complex comprised of 13 buildings that are each no more than 3 stories above grade. 81 dwelling units were leased to residents in 2011.The property is located in Climate Zone 3B … Read More
KBKG Tax Insight: Affordable Housing Developers & Investors Can Now Reap an Additional $2,000 Tax Credit for Each Unit Leased in 2017
Affordable housing developers benefit from various tax credits from Low-Income Housing Tax Credits to Rehab Credits, yet they often fail to claim a tax credit that is geared towards their developments: the Section 45L Tax Credit. Section 45L is a commonly overlooked section of the tax code that was recently renewed and rewards energy efficient … Read More