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Will the 179D Tax Deduction be extended in 2014? (Opinion)

As 2013 comes to an end it appears that the expiration of the EPAct 179D Tax Deduction is inevitable, The question that I hear quite often is “Will the 179D Tax Deduction be extended in 2014?” Of course, this question has been posed to us in many different ways… some rather amusing, others a bit frazzled and nervous. In reality, no one knows what’s going to happen or when it’s going to happen. Either way I will try to offer a summary as to what our opinion is based on Walker Reid Strategies Lobbying efforts.

  • I DO expect for the Energy Efficient Commercial Buildings Tax Deduction (EPAct 179D Tax Deduction) to expire come 12/31/2013.
  • I DO NOT expect a last minute extender package to swoop in and provide for an excellent New Year’s Eve present this year.
  • I DO expect to see some extender package put together that would include the 179D Tax Deduction in it, along with a slew of other expiring incentives about 3rd of 4th quarter of 2014.
  • I DO NOT expect to see significant reform to the 179D Tax Deduction as part of this extender package.
  • I DO expect the extension to include a provision that would make the 179D Tax Deduction retroactively available from the date of expiration.
  • I DO NOT expect the extension to be for a long period, a couple of years at most(If we are lucky).

All this being said… Relax, take a deep breath, and let’s focus on the projects completed within the current time frame of the 179D Tax Deduction, and move forward getting those certified. There are still millions of projects that fall within the current 179D Tax Deduction time frames and guidelines, which have not been certified. Now is the time to get these projects certified for the deduction.

If you utilize the 179D Tax Deduction as a sales tool to accelerating ROI and help close projects…well now is the time to use the 179D to push some of the prospects over the fence, before the end of the year. How you use the 179D going into 2014 is questionable, I recommend that you be upfront with your clients and let them know that the 179D has expired, but there may be opportunities to capture the benefit in the future. Make sure to bookmark completed projects so they can be certified retroactive