179D Federal Tax Deduction


179D Tax Deduction

The Emergency Economic Stabilization Act of 2008 extended the Energy Efficient Commercial Buildings Deduction through December 31, 2013. This legislation offers a tax deduction of up to $1.80/sf to those investing in energy efficient improvements placed in service after Jan. 1, 2006.

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.
179D Benefits

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

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.
» Find out if you can qualify for the 179D Tax Deduction
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.
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.
Get started today
KBKG offers a complimentary feasibility assessment that will illustrate how you can benefit from these deductions. To find out more or to get started on a feasibility assessment, email CJ Aberin or contact him directly at 877.525.4462 x148 or email cj@kbkg.com

“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