Cherrytree Group LLC Blog

The "Commercial Building Tax Deduction" establishes a tax deduction for expenses incurred for energy efficient building upgrades made by a building owner . The deduction is  for $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems.

Commercial real estate owners and business owners who have upgraded their buildings to be more energy efficient may qualify for tax deductions or investment tax credits. Consumers and business people should take advantage of the tax incentives. Generally, a tax credit is more valuable than a tax deduction because a tax credit reduces your taxes. A tax deduction only reduces the taxes that you owe by a percentage.

As a commercial real estate owner, if you have improved the energy efficiency of your commercial property or added energy efficient systems into your new building, you could be eligible for a tax deduction of up to $1.80 per square foot.

To qualify for the full deduction, the energy efficient investments must reduce energy costs by at least 50%.  A partial deduction of $0.60 per square foot is available for investments in one of three systems—lighting; heating and cooling; or building envelope. Remember, tax deductions reduce your overall taxable income which reduces the percentage of taxes you owe.

Do you want to know if you qualify for energy efficient tax credits or tax deductions? Contact The Cherry Tree Group, a Massachusetts based business consultant, and broker and syndicator of tax credits.

If your business needs another reason to build green, here it is: energy-efficiency tax deductions. The 2008 Emergency Economic Stimulus Act extended the deduction for energy-efficient commercial buildings.

These deductions, up to $1.80 per square foot for certain properties, were established to offset the costs of constructing energy-efficient buildings and can result in increased cash flow for your firm. This additional cash can be a great benefit for any business looking to make the most of their resources.

These deductions apply to improvements that exceed the 2001 building energy code standards by at least 50%. The provision is related to reduced energy consumption in three areas:

• The building envelope;
• Heating, cooling, ventilation and hot water systems (HVAC); and
• Interior lighting systems.
• The deduction is calculated based on the total improved square footage of the building.

by...Warren Kirshenbaum

The U.S. Department of Interior (DOI), announced a Call for Information and Nominations to develop wind on the Outer Continental Shelf.

Wind developers are invited to submit proposals that identify locations within the designated call area where they would seek commercial leases to develop wind energy projects.

The Call area is off the shores of Rhode Island and Massachusetts -- both states agreed to explore offshore wind development in July 2010. The announcement is part of DOI's Smart from the Start initiative.  Launched in November of last year, the initiative is a coordinated federal-state effort to speed the siting, leasing and construction process of new offshore wind energy projects.

In February, BOEMRE identified four offshore wind areas in Delaware, Maryland, New Jersey, and Virginia and expects to begin the leasing process in those states as early as 2012.

Cape Wind Project -- the first lease for an offshore wind farm in the federal waters of the United States, is now closing in on its construction phase.

The most recent announcement from DOI comes one month after the Incentivizing Offshore Wind Power (IWOP) Act was introduced in the U.S. Senate.

This legislation seeks to provide "the offshore wind industry with enhanced stability by extending investment tax credits for the first 3,000 MW of offshore wind facilities placed into service – which is an estimate of 600 wind turbines."

The tax credits are necessary because of the longer lead time needed to permit and construct offshore wind turbines, relative to onshore wind energy. Developers would have five years to install the offshore wind farm after receiving the tax credit. Companies would not be able to receive other production or investment tax credits in addition to the offshore wind investment tax credit, however.

Original article on Energyboom.com