Ruling Makes alliantgroup the only 179D provider with U.S. Tax Court Validated Process and Methodology
Discover the benefits of
the 179D Deduction
- The 179D deduction, also called the Energy Efficient Commercial Buildings Deduction, aims to incentivize businesses implementing energy-efficient technologies and practices within commercial buildings.
- Businesses working on buildings owned by government entities, non-profits, Indian tribal governments, or Alaska Native organizations can qualify.
- Eligibility for more than $5.00 per square foot in deductions is possible if the business contributed to the design of HVAC, interior lighting, or the building envelope.
Not sure if you qualify? Schedule a free consultation with our team of experts!
The following are examples from a range of industries:
Total Deduction:
$10 MM
Project Types Include:
- K-12 Schools
- City Housing
- Higher Education
- Libraries
- Police Stations
Total Deduction:
$6 MM
Project Types Include:
- Nursing Schools
- Higher Education
- K-12 Schools
- Hospitals
- College Dormitories
Total Deduction:
$2.8 MM
Project Types Include:
- Fire Stations
- Police Stations
- K-12 Schools
Who Can Claim 179D?
Architects, engineers, and design-build contractors that work on new or renovated government-owned buildings and structures, for example:
K-12 Schools
Military Bases
Prisons
Courthouses
Non-profit
Hospitals
Universities
Libraries
City Parks
Airport
Tribal Lands
The 179D Study Process
To qualify for the 179D tax deduction, one needs to follow due process. Broadly there are two parts to the 179D study process.
- Evaluation: In this part, you evaluate the building to determine if they qualify for 179D tax deduction. The building is also compared to the reference model for energy efficient qualifications under ASHRAE norms. This also involves a physical visit to the building by a licensed qualified third party in the state.
- Documentation: There are two primary documents required for 179D tax deduction. Allocation letters confirming ownership of property, energy efficiency of the building and signed by authorized personnel are required for 179D tax deduction. Secondly, a report certifying the building qualifies for 179D along with an energy model that shows energy reduction compared to ASHRAE standards.
1. Discovery & Assessment
Project List – Identify Buildings Secure Allocation Letter(s) Obtain Documentation
2. Qualitative & Quantitative Analysis
Energy Modeling, Field Inspection, Certification, and Deliver Final Deduction Numbers for Filing
3. Reporting
Document Cataloguing, Summary Drafting, and Final Report
We are the leading experts in tax credits and incentives. Since 2002, we have helped US businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
- Risk-free, no-cost preliminary assessment
- Top-class staff of licensed engineers in every state who give utmost attention to every aspect of the whole process
- State-of-the-art cutting-edge proprietary software interface that aligns with the US Department energy modeling software used by the IRS
- Best licensed engineers in all 50 states
- A highly skilled team of energy modelers who specialize in the three qualifying building systems
- Well-established relationships with 8000+ government entities
alliantgroup has delivered over $3 billion in 179D tax deduction. Our track record is as follows:
- Nearly $13.3M deduction identified for 51 properties in architecture and engineering
- Close to $12.8M deduction for a design-build contractor in controls, HVAC, and sheet fabrication
- Total $2.6M deductions for design-build contractors in interior lighting and HVAC
WHITEPAPER DOWNLOAD
A Guide on How You Can Claim the 179D Deduction
The Consolidated Appropriations Act of 2021 made the Section 179D Energy Efficient Building Deduction permanent and gives business owners and government contractors a tax incentive for energy-efficient improvements to commercial and government buildings.
What Improvements are Eligible for this Tax Deduction?
Taxpayers who invest in constructing new buildings or improving their existing buildings are eligible for 179D deduction. These investments must be aimed at reducing energy use. The improvements eligible under ASHRAE standards include:
- Building envelope improvements
- HVAC improvements
- Interior lighting solutions
Maximize Your 179D Deduction: Check If You Qualify
We’ll help you determine your eligibility, ensure everything is properly allocated, and maximize your deduction for no upfront fees. Complete the form below to estimate your refund.
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What are the Benefits of the 179D Tax Deduction?
You can claim up to $5.00 per square feet of the building worked on. For example, if the qualified building is 100,000 square feet, that could mean up to a $500,000 tax deduction for the work completed.
Schedule a free consultation with our team of experts to learn more.
We’ll discuss your eligibility and help estimate your potential tax benefit.