As an architect or designer, you may be entitled to a tremendous federal tax incentive, which was recently extended by Congress. If you have created energy efficient designs for government owned buildings, such as:
· Public Schools
· Airports
· Courthouses
· Libraries
· Student Housing
You are eligible to receive a tax deduction of up to $1.80 per square foot. Eligible projects must reduce energy use for any of the following categories; a building’s envelope, HVAC, and/or interior lighting systems
TAX BREAKS FOR ARCHITECTS AND DESIGNERS
Architects and designers who implement energy efficient designs on government buildings are eligible for the deduction if their design meets the criteria. A key provision to the tax code is the way the deduction can be transferred to the designer of any government building. Since most government buildings are required to be more energy efficient than the local building code, any architect that has done government work should strongly consider this deduction. Keep in mind that the building does not have to be considered “green” to qualify for this incentive. It only has to exceed the national Federal baseline criteria.
ELIGIBLE IMPROVEMENTS
Eligible improvements must reduce energy use for any of the following categories: a building’s envelope, HVAC, and/or interior lighting systems. Currently, there are eight different ways to pursue a deduction and all require comparison to ASHRAE Standard 90.1-2001 and certification by a qualified individual.
IDEAL CANDIDATES
Federal, State, and Local government entities all have the ability to allocate deductions for their architects and designers, and KBKG can help secure these allocations. Ideal project candidates will generally be larger than 50,000 square feet, and a wide range of improvements from simple lighting retrofits to full-scale construction projects are eligible. There is also an opportunity to retroactively claim any missed deductions on buildings designed since 2006.
THE BENEFITS
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.
Do You Qualify for 179D Deductions?
KBKG can help you identify if you are an ideal candidate for this lucrative study. Complete our quick form, and we’ll let you know.
2010 AIA Practice Management Knowledge Community
» Watch: 179D Tax Deduction for Architects and Engineers
GET STARTED TODAY
Established in 1999, KBKG has been providing specialty tax services. Additionally we are a leading educator within the real estate and CPA community. Our goal is to bring value to our clients by providing quality service, building long-term relationships, and ensuring a high standard of professional ethics.
KBKG also 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 x 148.
