As electrical contractors work to improve energy efficiency in commercial buildings, they often find themselves in a position to potentially claim valuable tax deductions. These contractors install sophisticated lighting systems and may believe they qualify for substantial tax benefits under Section 179D of the Internal Revenue Code. However, misunderstanding the timing requirements or the criteria for being “primarily responsible for design” can lead to denied deductions and disputes with the IRS. When exactly is energy-efficient property considered “placed in service” for tax purposes? What does it mean for a contractor to be “primarily responsible” for designing energy-efficient systems in government…
