Know Section 179D of EPAct
The world is facing the problem of depleting energy resources. The rate at which the energy is being consumed, the day is not far when we will not be left with any available energy resources. Although it is a known fact that energy can neither be created nor destroyed, but we still need to conserve energy for its proper utilization and also to make sure that energy does not vanish. The energy is being used at a very fast rate and we are disturbing the balance of nature that prevents the conservation of energy. The world soon realised that some immediate steps are needed so as to prevent the extinction of depleting energy resources.
Energy Policy Act, or commonly known as EPAct first came into picture in the year 1992 in the United States of America with the main objective of encouraging people to conserve energy. It was basically directed towards energy management and energy conservation. The EPAct of 1992 set some goals and also amended certain utility laws to increase the use of clean energy and also improve the energy efficiency in the country.
Another EPAct was published in the year 2005 as an attempt to fight with the increasing energy problems. It was another attempt by the USA to take some drastic steps towards the prevention of depleting energy resources. This brought about a change in the energy policy of USA, by providing tax benefits for the production of any type of energy. An important section of this Energy Policy Act is the section 179D, according to which a tax deduction of $1.80 per square feet was possible for the qualifying structures that meets specific requirements.
The Act provided a financial incentive to the Energy efficient buildings by reducing the initial cost of investing. Under this act, the building owners were eligible to write off the complete cost of upgrading building envelope, hot water and the indoor lighting of the building in the year of placement of new equipment in service. This provision was capped at $1.80 per square foot; however, a deduction of $0.60 per square foot can be earned by upgrading one of the three systems.
EPAct 179D provided tax benefits to the people who placed any or all of the three services in their building as an attempt to properly manage and efficiently use the energy resources. It was beneficial in the way that placing these services provided more energy sources and also gave tax benefits to the people.
Energy Policy Act, or commonly known as EPAct first came into picture in the year 1992 in the United States of America with the main objective of encouraging people to conserve energy. It was basically directed towards energy management and energy conservation. The EPAct of 1992 set some goals and also amended certain utility laws to increase the use of clean energy and also improve the energy efficiency in the country.
Another EPAct was published in the year 2005 as an attempt to fight with the increasing energy problems. It was another attempt by the USA to take some drastic steps towards the prevention of depleting energy resources. This brought about a change in the energy policy of USA, by providing tax benefits for the production of any type of energy. An important section of this Energy Policy Act is the section 179D, according to which a tax deduction of $1.80 per square feet was possible for the qualifying structures that meets specific requirements.
The Act provided a financial incentive to the Energy efficient buildings by reducing the initial cost of investing. Under this act, the building owners were eligible to write off the complete cost of upgrading building envelope, hot water and the indoor lighting of the building in the year of placement of new equipment in service. This provision was capped at $1.80 per square foot; however, a deduction of $0.60 per square foot can be earned by upgrading one of the three systems.
EPAct 179D provided tax benefits to the people who placed any or all of the three services in their building as an attempt to properly manage and efficiently use the energy resources. It was beneficial in the way that placing these services provided more energy sources and also gave tax benefits to the people.
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