View Information Collection Request (ICR) Package
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Please note that the OMB number and expiration date may not have been determined when this Information Collection Request and associated Information Collection forms were submitted to OMB. The approved OMB number and expiration date may be found by clicking on the Notice of Action link below.
View ICR - OIRA Conclusion
OMB Control No:
1545-2004
ICR Reference No:
202210-1545-010
Status:
Active
Previous ICR Reference No:
201906-1545-007
Agency/Subagency:
TREAS/IRS
Agency Tracking No:
Ready for Treasury
Title:
Energy Efficient Commercial Buildings Deduction (Form 7205)
Type of Information Collection:
Revision of a currently approved collection
Common Form ICR:
No
Type of Review Request:
Regular
OIRA Conclusion Action:
Approved with change
Conclusion Date:
02/14/2023
Retrieve Notice of Action (NOA)
Date Received in OIRA:
11/30/2022
Terms of Clearance:
Supporting statement updated during OMB review to reflect public comments and revised burden estimates.
Inventory as of this Action
Requested
Previously Approved
Expiration Date
02/28/2026
36 Months From Approved
02/28/2023
Responses
44,855
0
21,767
Time Burden (Hours)
247,324
0
3,761
Cost Burden (Dollars)
0
0
0
Abstract:
Form 7205 (December 2022) is being created to allow taxpayers who own or lease a commercial building to claim under section 179D a deduction for a portion of the cost of installing energy-efficient commercial building property. Form 7205 consolidates deductions from other IRS forms and schedules; and provides information to support the deduction claimed. This form helps taxpayers understand how to calculate the deduction and increase taxpayer compliance. The Consolidated Appropriations Act of 2021 (P.L. 116-260), section 102(a), made the IRC section 179D deduction permanent. Notice 2008-40 clarifies and amplifies Notice 2006–52, 2006–1 C.B. 1175. Notice 2006–52 provides a process that allows a taxpayer who owns a commercial building and installs property as part of the commercial building’s interior lighting systems, heating, cooling, ventilation, and hot water systems, or building envelope to obtain a certification that the property satisfies the energy efficiency requirements of § 179D(c)(1) and (d) of the Internal Revenue Code (IRC). Notice 2006–52 also provides for a public list of software programs that may be used in calculating energy and power consumption for purposes of § 179D, and allows software developers to be added to the list. Taxpayers are required by section 179D (statute) to certify each project for which they claim the 179D deduction. The IRS has not added to that burden in Notice 2008-40 but simply provided guidance on how to complete the certification process required by the statute.
Authorizing Statute(s):
US Code:
26 USC 179D
Name of Law: Energy efficient commercial buildings deduction.
Citations for New Statutory Requirements:
None
Associated Rulemaking Information
RIN:
Stage of Rulemaking:
Federal Register Citation:
Date:
Not associated with rulemaking
Federal Register Notices & Comments
60-day Notice:
Federal Register Citation:
Citation Date:
87 FR 53551
08/31/2022
30-day Notice:
Federal Register Citation:
Citation Date:
87 FR 72590
11/25/2022
Did the Agency receive public comments on this ICR?
No
Number of Information Collection (IC) in this ICR:
3
IC Title
Form No.
Form Name
Form 7205 - Deduction for Energy Efficient Commercial Buildings
Form 7205
Deduction for Energy Efficient Commercial Buildings
Notice 2006-52, Notice 2008-40 - Certifications
Notice 2006-52, Notice 2008-40 - Software Qualification
ICR Summary of Burden
Total Approved
Previously Approved
Change Due to New Statute
Change Due to Agency Discretion
Change Due to Adjustment in Estimate
Change Due to Potential Violation of the PRA
Annual Number of Responses
44,855
21,767
0
667
22,421
0
Annual Time Burden (Hours)
247,324
3,761
0
19,353
224,210
0
Annual Cost Burden (Dollars)
0
0
0
0
0
0
Burden increases because of Program Change due to Agency Discretion:
Yes
Burden Increase Due to:
Miscellaneous Actions
Burden decreases because of Program Change due to Agency Discretion:
No
Burden Reduction Due to:
Short Statement:
Form 7205 has been created to consolidate deductions reported on other IRS forms and schedules. Depending on the type of taxpayer claiming the 179D deduction, the deduction was previously reported on: • Form 1040 o Schedule C Line 48, Other expenses o Schedule E Line 19, Other expenses o Schedule F Line 32, Other expenses • Form 1120 Line 26, Other deductions • Form 1065 Line 20, Other deductions • Form 1120S Line 19, Other deductions Additionally, there is an increase in the burden estimates to better characterize the IRS Notice requirements for the qualified software list and the certifications.
Annual Cost to Federal Government:
$0
Does this IC contain surveys, censuses, or employ statistical methods?
No
Does this ICR request any personally identifiable information (see
OMB Circular No. A-130
for an explanation of this term)? Please consult with your agency's privacy program when making this determination.
No
Does this ICR include a form that requires a Privacy Act Statement (see
5 U.S.C. §552a(e)(3)
)? Please consult with your agency's privacy program when making this determination.
No
Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]?
No
Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]?
No
Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)?
No
Is this ICR related to the Pandemic Response?
No
Agency Contact:
Joan McAlpine 240 613-5820
Common Form ICR:
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(a) It is necessary for the proper performance of agency functions;
(b) It avoids unnecessary duplication;
(c) It reduces burden on small entities;
(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
(f) It indicates the retention periods for recordkeeping requirements;
(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
(i) It uses effective and efficient statistical survey methodology (if applicable); and
(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date:
11/30/2022
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