The Commercial Buildings Deduction allows the owner to write off the cost of a lighting upgrade, capped at $0.60/sq.ft., in the taxable year that the lighting is placed in service. What does “placed in service” mean?

“Placed in service” is a tax term that is usually defined between the IRS and the taxpayer. In the case of new lighting, it is typically defined as the time at which the lighting is ready for its intended use.

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