SECTION 8. ELECTIVE EXPENSING

PROVISIONS (§ 179D)

.01 Reserved . .02 Reserved . .03 Reserved . .04 Deduction for Energy Efficient Commercial Buildings (§ 179D) .

(1) Description of change . This change, as described in Rev. Proc. 2012– 39, 2012–41 I.R.B. 470, applies to a taxpayer that wants to change its method of accounting to deduct under § 179D amounts paid or incurred for the installation of energy efficient commercial building property, as defined in § 179D(c)(1). The deduction for energy efficient commercial building property is subject to the limits of § 179D(b) and must be claimed in the taxable year in which the property is placed in service. The basis of the energy efficient commercial building property is reduced by the amount of the § 179D deduction taken and the remaining basis of the energy efficient commercial building property is depreciated over its recovery period.

(2) Applicability . This change applies to a taxpayer that places in service property for which a deduction is allowed under § 179D(a).

(3) Inapplicability . This change does not apply to a designer to whom the owner of a government building allocates the § 179D deduction.

(4) Manner of making change . A taxpayer making this change must attach to its Form 3115 (the original, the copy filed at Ogden, and any additional copies) a statement with a detailed description of the tax treatment of the property under the taxpayer’s present and proposed methods of accounting.

(5) Certification requirement . In addition to the statement required by section 8.04(4) of this revenue procedure, a taxpayer making this change must attach to its Form 3115 a certification as required by section 4 of Notice 2006–52, 2006–1 C.B. 1175, or section 5 of Notice 2008– 40, 2008–1 C.B. 725, to demonstrate that the energy efficient commercial building property has achieved the reduction in energy and power costs or in lighting power density necessary to qualify for the § 179D deduction.

(6) No ruling on qualification . The consent granted under section 9 of Rev. Proc. 2015–13, 2015–5 I.R.B. 419, for a change provided in this section 8.04 is not a determination by the Commissioner that the taxpayer qualifies for a deduction under section 179D. The director will ascertain whether the taxpayer qualifies for a deduction under section 179D (including a review of the required certifications). See section 12 of Rev. Proc. 2015–13.

(7) Designated automatic accounting method change number . The designated automatic accounting method change number for a change under this section 8.04 is “152.” (8) Contact information . For further information regarding a change under this section, contact Jennifer Bernardini at (202) 317-6853 (not a toll-free number).