Energy Efficient Buildings Deduction

A new Internal Revenue Service Notice modifies previous guidance by providing an additional set of energy savings percentages that taxpayers can use to qualify for a partial Code Sec. 179D deduction for energy efficient commercial buildings. These new energy savings percentages, which are effective for property placed in service on or after Mar. 12, 2012, are: 25% for the interior lighting system; 15% for the heating ventilation and air conditioning (HVAC) and hot water systems, and 10% for the building envelope.