|Date Placed In Service
|Applicable Reference Standard 90.1
Reference Standard 90.1-2001
After 12/31/2014 and before 1/1/2027 *
Reference Standard 90.1-2007
Reference Standard 90.1-2019
*Taxpayers who begin construction before 1/1/2023 may apply Reference Standard 90.1-2007 regardless of when the building is placed in service
The above updates make the 179D deduction more accessible and taxpayer-friendly.
The 179D Deduction Study Process in Detail
To claim the 179D deduction, you must work alongside a tax professional and an independent third-party engineer. At alliantgroup, we offer a dedicated team of experts who work with you every step of the way.
We begin by identifying candidate buildings and performing a detailed energy-efficiency study to assess any qualified energy-efficient improvements they may have. It’s vital that the study is initiated within three years after a building is placed in service.
For those designers working on buildings owned by the government or tax-exempt entities, the next step is obtaining an allocation letter for each property. This letter will show how the tax deduction will be allocated among the designers involved in the process. For companies to receive this deduction, they must secure such a letter, which allows the government or tax-exempt entity to allocate the benefit to the taxpayer. The IRS has specific guidance regarding the information required in the letter, so it is highly recommended that a qualified consultant facilitate this process. Our Government Relations department is dedicated to securing allocation letters for our clients – in fact, alliantgroup has secured signed allocations from thousands of government entities in all 50 states.
Then, our team models the energy savings for each proposed system. The energy model will predict the amount of energy savings, in dollars, achieved according to ASHRAE standards. Once a model is completed, our team will provide certification indicating the improvements meet the ASHRAE standards, making the building eligible for the 179D deduction.
Tax Court Approved Process
One major advantage of working with alliantgroup is that we are the only provider with its process validated by the U.S. Tax Court. We perform the entire process, including obtaining allocation letters, identifying qualified designers, and conducting the energy model. Our team of experts ensures you maximize your return and claim all the deductions you’re entitled to. We provide you with expert guidance while allowing you to focus on running your business.
The 179D deduction is an incredible opportunity for building owners as well as for architects, engineers, and contractors who were designers of record for eligible new or renovated buildings. Our team of experts offers a hassle-free process to help you take full advantage of the deduction. By partnering with us, you’ll be one step closer to receiving the tax incentives you deserve.
The Honorable Mark W. Everson was the nation’s 46th Commissioner of Internal Revenue Service serving from 2003 until 2007. Prior to joining the IRS, Everson held Bush administration posts as Deputy Director for Management at the Office of Management and Budget and Controller of the Office of Federal Financial Management. Everson also served in the Reagan administration, holding several positions at the United States Information Agency and the Department of Justice, where his assignments included Deputy Commissioner of the Immigration and Naturalization Service. At the state level, Everson oversaw the Indiana Workforce and Unemployment Insurance Systems under Governor Mitch Daniels.