Join us August 27th for an AIA-accredited live virtual meetup on the 179D and 45L tax incentives.
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Our specialized accounting and engineering teams have been securing these tax incentives for over a decade. Our highly specialized experience means your business is positioned for the maximum amount of benefit, with the confidence that you've got an accurate and complete deliverable every time. So far we have completed thousands of studies and saved our clients millions.
We also respect and want you to keep your existing accountant and bookkeeping relationships. We simply cover specific portions of the federal tax code with the finest precision so your existing teams are well supported and you spend your time doing what you do best: building your company - while getting lots of money back every year!
Working with TaxTaker is risk free. TaxTaker collects a success fee only if you qualify for a tax credit. We also offer flexible payment options so you can choose to pay over 6 or 12 months.
It is possible that your CPA has taken other deductions but not necessarily the 179D Tax Deduction. Incentives like 179D and 45L require an in person site visit from an engineer that most CPA’s are not qualified to perform.
The best time to evaluate energy incentives like the 179D deduction, 45L tax credit, and the Investment Tax Credit (ITC) is right at the beginning of your project planning phase. Doing this early allows you to design your project to meet specific requirements, ensuring you qualify for maximum benefits and can plan your budget effectively. It also helps you integrate energy-efficient technologies and renewable energy systems from the start, rather than retrofitting later, and gives you ample time to gather necessary documentation for compliance.
While any size commercial building is eligible for the 179D deduction, the ideal project size is 25,000 square feet or larger. For residential, the project must be at least 4 stories.
The ITC is a dollar-for-dollar credit for expenses invested in renewable energy properties, most often solar energy developments. Inflation Reduction Act (IRA) extended the ITC from 2022 through 2032 as a 30 percent credit for qualified expenditures. It then drops to 26 percent for systems installed in 20 2033 and 22 percent those installed in 2034 before it is eliminated to 0% in 2035. Learn more here.
The 45L tax credit was created to promote energy conservation in the residential real estate sector, contributing to the broader goal of reducing greenhouse gas emissions. This credit provides builders and developers with a financial incentive for each dwelling unit that meets certain energy-saving standards. The credit amounts vary, with up to $2,500 for single-family and multifamily homes meeting the ENERGY STAR requirements and up to $5,000 for homes that achieve DOE Zero Energy Ready Home certification. Learn more here.
Cost segregation is a tax strategy that helps property owners accelerate depreciation deductions by identifying and reclassifying personal property assets to shorter depreciation periods. Instead of depreciating a building over 39 years (commercial) or 27.5 years (residential), components like lighting, HVAC systems, and landscaping can be depreciated over 5, 7, or 15 years. This means you can write off these costs faster, reducing taxable income and increasing cash flow in the earlier years of ownership
Yes! A property can definitely qualify for multiple tax incentives simultaneously like the 179D deduction, 45L tax credit, and the Investment Tax Credit (ITC), as long as it meets the criteria for each one. These incentives are there to encourage different types of energy-efficient and renewable energy projects, and you can often stack them to get the most financial benefits.
For instance, if you have a big residential building with four or more stories, you might qualify for the 179D deduction by upgrading the HVAC systems, lighting, and building envelope to be more energy-efficient. If you also have newly built or heavily renovated residential units, those could snag the 45L tax credit if they hit the required energy savings. Plus, if you install solar panels or other renewable energy systems, you could take advantage of the ITC, which gives you a credit based on a percentage of the installation costs.
The R&D tax credit can be an invaluable asset for your business. Imagine saving hundreds of thousands of dollars each year—money you can put directly back into your company. This isn't just about tax benefits; it's a financial game-changer. With the R&D credit, you can reinvest more capital into your business, driving new projects, expanding your team, and staying ahead of the competition. And you don’t even have to be profitable to be eligible!
Unprofitable startups with W-2 employees should definitely consider the R&D tax credit since it can be applied to offset payroll tax (the employer’s 6.2% social security tax on employees) of up to $500,000 per year (applied on a quarterly basis) for up to five years! If you don’t have W-2 employees, it can still be important to calculate and claim the R&D credit on your annual tax return. The R&D credit can be rolled forward for up to 20 years to be applied to your income tax liability in future years. For these reasons, it’s important to assess the amount of credit you’re owed on an annual basis even if you’re not yet subject to tax.
Just because you took the Research and Development Tax Credit doesn’t mean you will automatically get audited, but there are still random audits of all tax returns. Keep in mind that the R&D Tax Credit is not a loophole, and the rules for what you can and can’t claim are clear in most cases. As long as you work with an experienced tax professional to determine your eligible expenses and properly document them, you shouldn’t fear claiming a credit you’re entitled to. And in the unlikely event of an audit, TaxTaker will defend you!
You actually need to include your R&D claim along WITH your federal tax return, that's why we like to get an early start on collecting all the information we need to analyze your claim.
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