U.S. Tax Court ruling makes alliantgroup the only 179D provider with a court-validated study process.
Maximize Your 179D Tax Deduction
Unlock significant savings with the 179D tax deduction for energy-efficient commercial buildings. Claim up to $5 per square foot and reduce your tax liability while promoting sustainability. Our expert team will guide you through the process to ensure you maximize your benefits.
Not sure if you qualify? Schedule a free consultation with our team of experts!
Not sure if you qualify? Schedule a free consultation with our team of experts!
Maximize Your 179D Tax Deduction
Unlock significant savings with the 179D tax deduction for energy-efficient commercial buildings. Claim up to $5 per square foot and reduce your tax liability while promoting sustainability. Our expert team will guide you through the process to ensure you maximize your benefits.
What is the 179D Tax Deduction?
The 179D tax deduction, also known as the Energy Efficient Commercial Buildings Deduction, incentivizes both commercial building owners and designers of public buildings to implement energy-efficient technologies. This incentive has been in effect since 2006 and was made permanent in 2020. With enhancements from the Inflation Reduction Act, the deduction now offers even greater financial benefits.
This deduction targets improvements in HVAC systems, lighting, and building envelopes, encouraging both commercial building owners and designers of public buildings to adopt sustainable practices. Eligible projects, including those involving government-owned buildings, non-profits, Indian tribal governments, or Alaska Native organizations, can receive deductions up to $5 per square foot. To qualify for the full deduction, projects must meet specific prevailing wage and apprenticeship requirements.
By taking advantage of the 179D deduction, eligible businesses can significantly reduce tax liabilities while contributing to a more sustainable future. Our expert team is here to guide you through the process and help maximize your benefits.
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A Guide on How You Can Claim The 179D Tax 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.
Who Can Take Advantage of Section 179D?
Under the current law, a variety of entities can benefit from the 179D deduction. Commercial building owners who implement energy-efficient improvements are eligible for this deduction. Additionally, designers of buildings owned by governmental entities, such as architects and engineering firms, can also benefit.
Architects
Engineers
Design-build contractors
Who Can Provide a 179D Allocation Letter?
- Governmental entities
- Not-for-profit organizations
- Indian tribal governments and Alaska Native corporations
Tax-exempt organizations can negotiate the allocation of the 179D deduction to the designer of the property, offering substantial savings for new projects. This is particularly beneficial for groups with significant real estate holdings, such as universities, hospitals, and religious organizations.
Projects that Qualify
RELIGIOUS ORGANIZATIONS
MILITARY BASES
COURTHOUSES
NON-PROFIT
HOSPITALS
UNIVERSITIES
LIBRARIES
CITY PARKS
AIRPORT
TRIBAL LANDS
What Improvements Qualify for the 179D Tax Deduction?
What Are the Eligible Improvements for Claiming The 179D Tax Deduction
Taxpayers who invest in designing new buildings, invest in constructing new buildings, or improve existing buildings are eligible for the 179D deduction. These investments must be aimed at reducing energy use. The improvements eligible under ASHRAE standards include:
Building envelopeimprovements
HVACimprovements
Interiorlighting solutions
Client Success Stories
Energy services provider
Total Deduction
$7.8MM
Project Types Include:
- Public universities
- Airports
- Medical centers
- School district buildings
Architecture & Engineering firm
Total Deduction
$2.4MM
Project Types Include:
- Educational facilities
- Government offices
- Convention centers
- Correctional facilities
MEP engineering firm
Total Deduction
$1.2MM
Project Types Include:
- Healthcare facilities
- Community centers
- Libraries
- Public schools
Client Success Stories
The following are examples from a range of industries:
MEP engineering firm
Architecture and Engineering firm
Energy services provider
Project Types Include:
- Healthcare facilities
- Community centers
- Libraries
- Public schools
Project Types Include:
- Educational facilities
- Government offices
- Convention centers
- Correctional facilities
Project Types Include:
- Public universities
- Airports
- Medical centers
- School district buildings
Project Types Include:
- K-12 Schools
- City Housing
- Higher Education
- Libraries
- Police Stations
Project Types Include:
- Nursing Schools
- Higher Education
- K-12 Schools
- Hospitals
- College Dormitories
Project Types Include:
- Fire Stations
- Police Stations
- K-12 Schools
What is the 179D Study Process?
1. Discovery & Assessment
Project List – Identify Buildings, Secure Allocation Letter(s), and 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
Benefits of the 179D Tax Deduction - Hear From Our Clients
You can claim up to $5 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.
How Can We Help? The alliantgroup Advantage
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
A highly skilled team of energy modelers who specialize in the three qualifying building systems
Well-established relationships with 8000+ government entities
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
A highly skilled team of energy modelers who specialize in the three qualifying building systems
Well-established relationships with 8000+ government entities
How Can We Help? The alliantgroup Advantage
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.
Ready to get started?
Schedule a free consultation with our team of experts to learn more. We’ll discuss your eligibility and help estimate your potential tax benefit.
FAQ's
Who is eligible for the 179D tax deduction?
Eligible parties include commercial building owners and designers of public buildings, such as architects and engineers, who work on energy-efficient projects for government entities, non-profits, Indian tribal governments, or Alaska Native organizations.
How do I claim the 179D deduction on my tax return?
To claim the 179D deduction, you must obtain a certification from a qualified professional verifying that the building meets the energy efficiency requirements. this certification should be included at alliant, we have engineers in-house who take on field inspections and certification. This certification should be included with your tax return.
Where do I report the 179D deduction on my tax return?
The 179D deduction is typically reported on the tax forms related to business expenses. Consult with a tax professional to ensure proper reporting on your specific tax return.
Can Section 179D create a loss?
While the 179D deduction can reduce taxable income, it cannot create a tax loss. It can, however, significantly lower tax liabilities.
How much is the 179D deduction per square foot?
The deduction can be up to $5 per square foot, depending on the level of energy efficiency achieved in the building improvements as well as meeting prevailing wage and apprenticeship requirements.
Who can provide a 179D allocation letter?
A 179D Allocation Letter can be provided by the governmental or tax-exempt entity that owns the building, allocating the deduction to the designer responsible for the energy-efficient design.
Why is a 179D allocation letter important?
The 179D Allocation Letter is crucial because it allows designers to claim the deduction for their work on public buildings, providing them with significant tax savings.
Is 179D worth it?
Yes, the 179D deduction can provide significant tax savings of up to six figures, reducing tax liabilities while promoting energy efficiency and sustainability.