views 15 Year Property Credit for Energy Efficient Homes The PATH Act makes permanent the 15-year depreciation recovery period for qualified restaurant property, qualified retail improvement property and qualified improvement property. The 45L credit for new energy efficient homes is retroactively restored and extended for homes acquired before Jan. 1, 2017. Eligible contractors can claim, as part of the general business tax credit, $2,000 (for a 50 percent reduction in energy usage) or $1,000 (for a 30 percent reduction in energy usage). Qualified Leasehold Improvement Property Prior to the passage of the PATH Act, taxpayers could take bonus depreciation and Section 179 deductions on real property improvements only if the improvement met the restrictive definition of “qualified leasehold improvement property.” Beginning on Jan. 1, 2016 these standards have relaxed somewhat, meaning taxpayers may be able to qualify more of their real property improvements for bonus and/or Section 179. The new standard is referred to as “qualified improvement property” and generally consists of any improvement to an interior portion of a building that is nonresidential real property if the improvement is placed in service after the original date the building was placed in service. Low Income Housing Credit From July 30, 2008 through Jan.

1, 2015, investors claiming the Low Income Housing Credit were guaranteed a minimum credit rate of at least 9 percent for any new building placed in service that was not federally subsidized. The PATH Act, restores and makes the permanent the 9 percent minimum. These provisions are just the beginning. The PATH Act included modifications and/or extensions of the Affordable Care Act, individual deductions, education credits, the child tax credit, charitable contributions, IRS audits, the R&D credit, small business stock sales, employment credits, S Corporation built in gains and many more thrilling dinner topics.

For more information on the items mentioned above or any others included in the PATH Act and an analysis of how they will affect your tax liability, contact your tax advisor. Energy Efficient Commercial Building (EECB) Deduction The EECB deduction is retroactively restored and extended for property placed in service before Jan. 1, 2017. This credit is allowed for commercial properties that meet certain energy efficient criteria for interior lighting systems, heating and cooling, ventilation and hot water systems, or the building envelope. Assurance | Tax | Advisory | dhgllp.com 2 .