If your real estate niche is investing in commercial buildings, be sure to check out the federal tax incentives offered for energy efficiency upgrades. Since commercial buildings release the most carbon emissions and are the world’s largest energy consumers, the government is looking for ways to entice building owners and designers into going green.
Commercial Building Tax Deduction
You may be eligible for a deduction of up to $1.80 per square foot if you reduce your building’s total energy usage by at least 50%. You can qualify for this deduction by replacing your building’s boiler or furnace with a new heating and cooling system; installing energy efficient interior lighting technology; or doing things like adding insulation or replacing windows. Even though this offer is set to expire (it must be installed by December 31, 2016), this type of credit is typically extended.
If you haven’t yet decreased your total energy usage by 50%, you still may be able to take advantage of partial deductions of up to $0.60 per square foot. You’ll need to implement and meet energy saving goals throughout the year.
Solar Investment Tax Credit
A 30% tax credit is available if you install rooftop or utility-scale solar energy systems. The Solar Investment Tax Credit has been extended to last until 2023. After that, the tax credit will go down to 10%.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.