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Are you taking advantage of all the “green” building incentives available to your business?
In the past several years, Congress and recent administrations have placed a huge emphasis on green building initiatives. In order to counter problems that we are facing in energy, Congress passed the Energy Policy Act of 2005 that created a tax incentive that relates to the design and installation of energy efficient interior lighting, HVAC, hot water, or building envelope systems in commercial buildings.
Through this incentive found in section 179D of the Internal Revenue Code, qualifying businesses can receive up to $1.80 per square foot in deductions for eligible projects placed into service any time from 2006 to 2013.
Who can qualify?
The deduction is available to building owners and lessees who make the energy efficient improvements to their commercial buildings including:
- Retail buildings
- Office buildings
- Industrial buildings
- Apartment buildings (at least 4 stories)
- Warehouses
In addition, designers of government-owned buildings can also get the benefit under a special rule for public property! Eligible designers include architects, engineers, or design-build contractors who have done energy efficient design work for new government buildings or renovations/retrofits of existing government buildings such as:
- Schools
- State universities
- Libraries
- Town halls
- Airports
- Transportation facilities
- Post offices
- Court houses
- Military bases
- Government offices
- And others
What are the requirements?
There are multiple methods to securing a deduction and different levels of deductions depending on the energy efficiency levels that your project meets. Energy and power reductions of as little as 10%, in some cases, can result in very substantial tax savings. It's critically important that you examine and exhaust all of the partial and fractional qualification methods in order to maximize your benefit.
alliantgroup's expertise
alliantgroup consists of a team of engineers and tax professionals including CPAs, attorneys, and the former commissioner of the IRS who are experienced in the 179D deduction.
Our services include the following:
- No cost preliminary analysis and assessment
- Energy modeling to certify qualified projects
- Comprehensive product deliverable
- Tested and proved audit defense
For more information, please click here to contact alliantgroup.
For immediate assistance, contact David Ji.
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