Form 7205 is a form used to claim a deduction for energy efficient commercial buildings that are placed into service before January 1, 2023.
Who Should File a Form 7205
Individuals or business entities that would claim a deduction for a qualifying energy efficient commercial building property (EECBP) that is placed into service during the tax year must file Form 7205 to claim the deduction.
Am I Eligible?
Starting on January 1, 2023 this deduction is available to:
Designers of the EECBP that was installed in buildings owned by specified tax-exempt entities
Owners of qualified
Does my property qualify as a energy efficient commercial building?
To meet the criteria a property must meet the following:
- The property must be depreciable
- The property must be located within the United States
- Must "be installed as part of the interior lighting systems, heating, cooling, ventilation, and hot water systems, or the building envelope" and;
- Has been certified as being installed as part of a plan to reduce the yearly energy and power costs as they pertain to the inside lighting systems, cooling, heating, ventilation, and or hot water systems of the building by 50% or more in comparison to a building that meets the minimum requirements of Reference Standard 90.1.
A certification is required to be completed by qualified individual is required for either a building owner or designer to claim the deduction under section 179D for EECB. According to the IRS, this certification must meet the requirements specified in Notice 2006-52, Section 4.