Section 179D Deduction for Energy Efficient Property

Section 179D generally allows a deduction for the cost of all or part of energy efficient commercial building property placed in service during the taxable year.  The energy efficient improvements must be placed in service before January 1, 2014.  Of special note for clients in the construction business is the provision providing that, where the energy efficient commercial building property is on or in property owned by a Federal, State or local government, or a political subdivision thereof, the deduction may be allocated to the person primarily responsible for designing the property, as opposed to the tax-exempt owner who could not utilize it.