Some regulations have not been issued. What is missing, and when will they be issued?
Internal Revenue Bulletin 2006-26, June 26, 2006 (CBTD begins on page 1175 of the IRB) is the latest version of IRS guidance. Final regulations have not, as of August 28, 2006, been issued.
Issues addressed or to be addressed include:
- infrastructure-tax forms, etc. for tax professionals so that there is a process by which the tax deduction can be claimed at tax time (not in current guidance). The Bulletin does say that supporting information for the deduction is not to be submitted with the return, but must be kept by the taxpayer;
- partial deductions by individual building system-each system (lighting, HVAC/water heating, and building envelope) has a 16.7% share of the overall 50% energy savings using the whole building calculation method. As an option, lighting may use the interim provision until final regulations are published, which is not anticipated for some time. NEMA has requested that the interim lighting rule be made permanent;
- public buildings-how the lighting system's designer can claim the tax deduction in place of the owner in the case of publicly owned buildings will be in a future Notice, and
- certification-how projects will be certified and who will certify them is in the June 26 Bulletin. Licensed engineers or contractors in the building's jurisdiction may be used.
It is not known when Treasury will issue the final regulations.
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