Contractors for Government Agencies Can Qualify for a Commercial Building Tax Deduction

by | Apr 19, 2013 | Money And Finance

While the commercial building tax deduction seems as though it would only apply to those who own their own business, it can actually apply to contractors who work with government buildings. The government buildings are owned by the people. The entities that exist within them don’t actually qualify for these types of government programs. However, to ensure the right work is done to make these buildings more energy efficient, contractors, such as architects, engineers and other contractors, can take advantage of this program.


Simply designing a government building so that it will be as energy efficient as possible can qualify the contractor who does the work with the ability to file for the tax deduction. This is because the government wants to make sure their buildings follow the same energy-efficient standards as the private sector does. As long as the designs are for new or retrofitted buildings that have been created between December 31, 2005 and January 1, 2014, you may qualify.


Another type of contractor that can benefit from the commercial building tax deduction is those who are energy consultants. There are some companies that specialize in meeting with various businesses, including government entities, to determine how to make those buildings as energy efficient as possible. Those who consult on these projects are also often able to partake in the deductions that are available for making these buildings more energy efficient.

Energy-Efficient Changes

There are many types of energy-efficient changes that can be done to government buildings to ensure they operate at peak efficiency. This includes making sure the HVAC system is running efficiently. Many government buildings also use older lighting systems that could save money by changing to a newer system that uses LED lighting. Even though government agencies aren’t able to pay as much for this type of contract, the contractors can benefit from the tax deductions, making it an even trade.

Government entities can also benefit from making energy-efficient changes to help save the government money and keep taxes lower for residents. However, even though the government entities aren’t eligible for a commercial building tax deduction, the contractors who work on these changes may qualify. For instance, architects and engineers who complete the designs, as well as those companies that consult on the energy-saving measures, can all qualify for the deduction in place of the government agency for which the works is completed.


To learn more about who qualifies for a commercial building tax deduction for government buildings, visit the Walker Reid Strategies website.

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