Energy-Efficient Commercial Building Deduction – 179D
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 2015.
Who can qualify?
The Energy-Efficient Commercial Building Deduction is available to building owners and lessees who make energy efficient improvements to their commercial buildings including:
- Retail buildings
- Office buildings
- Industrial buildings
- Apartment buildings (at least 4 stories)
In addition, designers of government-owned buildings can also get the benefit under a special rule for public property! Eligible designers include architects, engineers, contractors, environmental consultants or energy services providers who have contributed towards the energy efficiency for new government buildings or renovations/retrofits/additions of existing government buildings such as:
- State universities
- Town halls
- Transportation facilities
- Post offices
- Military bases
- Government offices
- And others
What are the requirements?
There are multiple methods to securing the Energy-Efficient Commercial Building Deduction and different levels of deductions depending on the energy efficiency levels that your project meets. Energy consumption cost 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 consists of a team of engineers and tax professionals including CPAs, attorneys, and former commissioners for 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
Would you like additional information or do you have questions about 179D?