Commercial Property Owners to Qualify for Energy Efficiency IRS Deduction

By Anthony Seruga

As a commercial property owner, taxes can be a sore subject. You might feel like the government gets a large share of your income. While the government will always be there to take a portion, that portion just got smaller. If you can make your buildings qualify for energy efficient tax deductions, you could save a great deal of money. The changes required might not be as bad as you think.

Some commercial property owners have never dealt with qualifying for energy efficient tax deductions because they thought it was a waste of time. However, the government has definitely made it worth your while to look into this now. With a 50% energy efficient savings target, you can receive up to a $1.80 per square foot tax deduction. While that may not seem like a lot, multiply that by several thousand square feet and it adds up quickly.

Even if a 50% energy efficient savings seems like too much to shoot for, you can still aim lower and get worthwhile tax deduction savings. Even if you only shoot for a 16.67% energy efficient savings, you can get up to $.60 per square foot back as tax deductions.

In order to get tax deductions, you have to claim that you will meet certain goals over the next year. There are certain types of software that must be used to track these goals. While the government is willing to cut you a break, they won't do it without some effort on your part. This is usually a pretty fair trade for most commercial property owners. In return for a slight change, they can receive large tax deductions.

Although the original plan that was put in place was scheduled to expire soon, the deadline has been extended. As of now, commercial property owners can get energy efficient tax deductions through all of 2008. While this is only another year, the program will most likely be extended into the future.

Any way that the government can help the environment is becoming a big part of future plans. With an election year coming up, even more emphasis on the environment will be given. This emphasis could lead to even more energy efficient programs in the future. If you're a commercial real estate owner, you could stand to save thousands of dollars through energy efficient tax deductions.

Energy efficient tax deductions apply to three main areas of the building: the building envelope, the lighting, and heating and cooling systems. These are the main areas that can be improved upon. However, you will most likely recoup these costs over the long haul. Any improvements you make to the building will also be deductible. Therefore it's a win-win for you, the commercial property owner.

Tax deductions may not seem that important at first glance. However, when it's time to file taxes, they are huge. Any advantage you can gain when filing taxes is critical. Success in the commercial real estate game depends on gaining every advantage you can get. Energy efficient tax deductions are definitely an advantage that you can't afford to be without.


Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable.

Qualities of a Leader

How often have you heard the comment, He or she is a born leader? There are certain characteristics found in some people that seem to naturally put them in a position where theyre looked up to as a leader.

Read More

Secure Client Portal






Forgot password?

Sign up For Our Newsletter

Get Weekly Tax & Wealth Building Tips!