179D Federal Tax Deduction

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Find out if you qualify for 179D








Commercial building owner
Designer of government-owned building





   

Section 179D Tax Deduction

The Energy-Efficient Commercial Buildings Tax Deduction is a significant financial incentive for designers to meet or exceed an agency’s energy reduction requirements for new and existing buildings. Recent tax legislation extended the Energy Efficient Commercial Buildings Deduction through December 31, 2014. This legislation offers a tax deduction of up to $1.80/sf to those investing in energy efficient improvements placed in service after December 31, 2005.

Eligible improvements for 179D
Eligible improvements must reduce energy use for any of the following categories: a building’s envelope, HVAC, and/or interior lighting systems. There are different ways to pursue a deduction and all require comparison to ASHRAE Standard 90.1-2001 and certification by a qualified individual.

Section 179D Benefits

Size of
Improvement
Partial Tax Deductions For…
Full Tax
Deduction
Lighting
HVAC
Envelope
50,000 sf
$15k – $30k
$30K
$30K
$90K
100,000 sf
$60K
$60K
$60K
$180K
300,000 sf
$180K
$180K
$180K
$540K

Additional tax breaks for Architects & Designers
Architects and designers who implement energy efficient designs on government buildings are also eligible for the deduction if their design meets the criteria.

“KBKG helped us qualify for significantly more tax credits than we would have received. When our initial energy analysis was performed, most of our units did not qualify but were very close. KBKG’s energy consultants worked with our development team and made very cost effective recommendations to increase energy efficiency. After we implemented those suggestions, they found that the majority of our units now qualify, and the benefits are substantial.”
– Judit Vass, CPA / Senior Development Controller / Continental Real Estate Companies

Are you and ideal candidate?

Unlike most deductions, which are based on the amount spent, this deduction is primarily based on affected square footages. Ideal candidates will generally have improvements with a square footage of at least 50,000 square feet. A wide range of improvements, from simple lighting retrofits to full-scale construction projects, qualify for this timely tax break. Other great candidates include regional or national chains with multiple locations.

The Process

The basis for developing and supporting this deduction is a detailed engineering analysis, as prescribed by the IRS. Our multi-disciplinary team of engineers and tax experts will ensure that you obtain the maximum deductions available, following IRS guidance. The process for obtaining the 179D deduction requires a detailed analysis that must be certified by a qualified third party . KBKG has the in-house expertise and the required professional qualifications to certify and secure the lucrative tax and financial benefits that are offered by the 179D tax deduction. Our team can also assist in the design process for future projects by suggesting design alternatives that would ensure qualification for 179D and other specific green building incentives.

   

Meet the 179D Experts

 
CJ Aberin, CCSP
Principal
» Biography

 
Brandon Val Verde, CEPE
Manager
» Biography

Claiming the Deduction

KBKG offers a complimentary feasibility assessment that will illustrate how you can benefit from these deductions. Get started today with a feasibility assessment.