Energy Credit for Businesses

[jskouberdis]

Good afternoon Community,

I have a question regarding a client who has a commercial rental. They had a new HVAC system installed and I know that they can take bonus depreciation or section 179 depreciation but can they also get a business energy credit for the cost of the HVAC system on form 3468.  The total cost was $7500.

Thanks,

John Skouberdis

[TaxGuyBill · Accepted solution]

Do you see a spot for it on 3468?

I'm not aware of any federal tax credits for HVAC on commercial property.

[jskouberdis]

I think you are right.  Because if it was your personal residence you can take a credit but the IRS would not allow you to take a deduction and credit also.  You are getting your tax benefit by taking depreciation or Sec 179 or Bonus Depreciation.  Whereas the personal residence individual only gets a credit and cannot deduct it anywhere.

Thanks for your reply,

John