Have an Energy Efficient Commercial Property? DCAMM is Now Signing Tax Deduction Applications!

By Derek Newberry, Advocacy Fellow

Another day brings another incentive that's available for green buildings!

Do you have a DCAMM project that was completed since 2011, or is scheduled to be completed? Massachusetts' Division of Capital Asset Management & Maintenance (DCAMM) has announced that it will sign off on allocation applications for deductions under IRS Code §179D.

Contrary to their previous announcements, now the DCAMM will not seek any compensation, fees, sharing, deduction from design fee, etc. for granting this to the designer. Although the deduction is intended for the primary designer of the property (or the general contracter, for projects procured for c. 25A), if the primary designer doesn't seek the benefit and it is sought by another party, such as the subconsultant, the DCAMM will still consider these situations on a case-by-case basis.

Access the application here. 

A letter of intent is also available at the link. Designers should submit this if they want a commitment from DCAMM to allocate their deduction, before getting the required third-party certification that their property qualifies under §179D.  

The application clarifies that for this form's purpose, “property” refers to an “energy efficient commercial building property satisfying the requirements of 26 U.S. Code §179D, which has been installed in a Commonwealth building as part of a DCAMM project.”

DCAMM will prioritize the applications submitted for buildings put into service in 2011, considering that the final filing amendment deadline is quickly approaching. However, if your firm is facing another deadline, please let the agency know so that they can try to process your paperwork more quickly. In general, these applications will be considered in due course.

Please note that these specific forms are not required. If designers submit an application for allocation in any other form, it will still be considered—as long as it includes all the necessary information for §179D. Although DCAMM is now helping designers who are seeking this tax deduction, the agency will not be able process forms with extra paperwork, which includes more information than they need to allocate benefits to the designer (such as additional waivers, rights' reservations, indemnity provisions, etc.).

If you have any questions about this program, please contact Jack Keleher at Jack.Keleher@state.ma.us or Elizabeth Eromin at Elizabeth.Eromin@state.ma.us.

Thanks to our Advocacy Committee member Jerome Garciano, LLP with Robinson & Cole, for sharing this update!