The New Energy Efficient Home Credit under Internal Revenue Code §45L was established by the Energy Policy Act of 2005 and was subsequently extended under multiple acts.

The §45L tax credit, which is only available to eligible contractors, is potentially worth up to $2,000 for each qualified new energy efficient unit acquired for use as a residence from an eligible contractor after December 31, 2005, and before January 1, 2022.

The IRS has extended the §45L $2,000 tax credit for new qualifying energy efficient dwellings through December 31, 2021. You can receive the $2,000 credit for each qualifying unit sold or leased prior to the deadline. This includes homes, apartments and independent living facilities.

The CARES Act amended §172(b)(1) and as a result of that amendment, taxpayers take into account such NOLs in the earliest taxable year in the carryback period, carrying forward unused amounts to each succeeding taxable year. Rev. Proc. 2020-24, §4.01(1) and this white paper provide guidance as to when and how to file the irrevocable election.

The following question as been posed based on the release of the CARES Act: If a taxpayer buys a building and immediately renovates it, would the improvements qualify as Qualified Improvement Property (QIP) eligible for bonus depreciation? Read our answer in this White Paper.

Recently, we have received questions regarding the proper procedures for implementing a change to the depreciation treatment for QIP assets originally capitalized as nonresidential real property. Here is our reply. UPDATED 5/7/20

The CARES Act provides a technical correction to the TCJA, and specifically designates QIP as 15-year property for depreciation purposes. This makes QIP eligible for 100% bonus depreciation. This change is effective as though it had been originally included in the TCJA (for property acquired and placed in service after 9/27/17). Read the white paper for more details.

The Energy Policy Act of 2005 created (and subsequent legislation has extended) the CBD to encourage investment in energy efficient building systems. This incentive establishes a tax deduction for capitalized assets that were placed into service after December 31, 2005, and before January 1, 2021. See §179D(h) as amended by the Further Consolidated Appropriations Act, 2020.

The New Energy Efficient Home Credit under Internal Revenue Code §45L was established by the Energy Policy Act of 2005 and was subsequently extended. The credit, which is only available to eligible contractors, is potentially worth up to $2,000 for each qualified new energy efficient home acquired for use as a residence from an eligible contractor after December 31, 2005, and before January 1, 2021.

On September 13, 2019, the IRS issued new proposed regulations (REG-106808-19) that provide guidance on the eligibility of motor vehicle dealers with business interest expense to claim bonus depreciation on their otherwise qualifying property. This is an update to our Business Expense, Part 2 White Paper.

A three-part series was written about the confusing details within the 2017 TCJA Provision about Business Interest Expenses. This is the first paper on the subject discussing the limitations of deductions.

The second White Paper on the 2017 TCJA Provisions addresses special circumstances for motor vehicle dealerships. UPDATE: On 9/13/19 updates were issued that effected this white paper. Read the updated one HERE.

The last White Paper of the three-part series on the 2017 TCJA Provisions focuses on electing out of business interest expenses. .

Recently there has been some confusion about QIP recovery periods due to the amendments to §168. The Committee Comments for the Tax Cuts & Jobs Act discussed altering the recovery period. However, actual changes did not make it into the final bill. This white paper summarizes all the details.

The Rev Proc can be confusing. A client recently asks: Is the change from treating an asset as non-depreciable to depreciable considered an automatic change? This white paper answers that question. 

What may seem like an easy question, could take a lot of research
to get the right answer. A client recently inquired about the depreciation on a partially replaced roof. The answer looks simple, but there were many tax laws to consider – just take a look at this white paper to understand. 

The new tax laws are out and with them come important changes. While not all aspects affect cost segregation, some will have a substantial impact. This white paper focuses on the changes effecting 2017 property.