News: Ask the Professional - Are there tax benefits for reducing our energy costs and are we too late to claim them?

For Immediate Release:
March 11, 2011
Contact:
Larry Mar, Principal
510-893-6908
lmar@rina.com

We had made improvements to our office building in 2007 which included windows, lighting and plumbing. We recently learned these reduced our energy costs. Are there tax benefits for this and are we too late to claim them?

You may claim a deduction if the improvements decreased your power and water costs by 50% from the standard costs established for buildings in the same classification as your office building. The deduction is the capitalized costs of the energy saving improvements, limited to $1.80 per square foot multiplied by the number of square feet of your office building.

To claim the deduction, you can amend your 2007 income tax return or you may claim the deduction on your next timely filed federal income tax return by requesting an automatic change in accounting method.

Contact us if you have questions regarding how to claim the federal energy efficient commercial building deduction.