Dear LightingTaxDeduction.org,

How should a taxpayer claim the Section 179D deduction related to energy efficient commercial buildings?

Answer: There is no special form to claim the deduction. The IRS instructions to business forms (e.g., Form 1120 for corporations, Form 1120-S for S corporations, and Form 1065 for partnerships) indicate that the taxpayer should include the amount of the deduction in the amount in the "Other deductions" line of the tax return. A statement listing the types and amounts of "other deductions" should be attached to the return. Tax preparers may also elect to use IRS Form 4562, Depreciation & Amortization; Part 2 of this form covers special depreciation allowances and other depreciation. The amount of the CBTD can be included in this section with other appropriate deductions, along with a statement listing the types and amounts of deductions included in the total deduction taken in this section of the form.

In addition, it is important that a taxpayer obtain and retain the necessary certifications and documentation to claim the CBTD (see IRS Notice 2006-52 for these requirements, which were subsequently amplified in IRS Notice 2008-40).

• Back to Main | Print this page