179D Deductions
The Energy Policy Act of 2005 was enacted to help save energy by encouraging commercial building owners to incorporate energy efficient features into their buildings.
Building owners qualify for the deduction at the time of building improvements. If the building owner is a public entity (currently defined as education projects K-12 and higher education, military facilities and building used by federal governments) then the primary designer of the qualifying systems (architect, engineer, contractor, environmental consultant, energy services provider) is considered the owner for the purposes of the deduction.
To qualify for the 179D deduction the building must achieve a 50% energy savings as compared to a similar building that would have met the minimum requirements of a 2001 baseline. The energy savings must be achieved through the building envelope, the interior lighting system, and the HVAC and hot water systems. The maximum deduction is $1.80 per square foot but each system contributes $.60 per square foot to the total deduction and can qualify independently.
Beene Garter's experts combine the science of engineering with the principles of tax and accounting to provide our clients with this valuable deduction.
Our 179D deduction services include:
- An FTD certificate package (requires documentation for deduction)
- A review of existing T-24 or IECC to verify compliance with current code requirements
- A review of building lighting, HVAC and envelope systems for federal tax deduction qualification
- A contract for analysis and certification documentation
