
Qualify for the
179D Tax Deduction
179D Tax Deduction Nevada
Our team of engineers and tax experts will obtain the maximum 179D deductions available in the state of Nevada, following IRS guidance. The deduction is up to 5.00 $/sq ft for energy efficient lighting, HVAC systems, and the building envelope. The process for obtaining the 179D deduction in Nevada 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 your Nevada property as required by the IRS.
Case Study: Nevada
A retail shopping center in Reno, Nevada with 227,000 square feet qualified for the 179D lighting deduction.
KBKG successfully obtained $272,400 in total 179D tax deductions.
Eligible improvements
Taxpayers that invest in ground up construction or in improvements to their existing buildings are potentially eligible for 179D deductions. Eligible improvements must reduce energy use by making investments in 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 certification by a qualified expert.
Eligible deductions for Architects & Designers
Architects and designers in Nevada who implement energy efficient designs on government buildings are also eligible for the deduction if their design meets the criteria.
Eligibility Expansion in 2023 and forward includes Tax-Exempt Entities
In 2022 and prior years Architects, Engineers, and Design-Build contractors are eligible to receive allocations on projects they designed for federal, state, and local government-owned buildings. Starting in 2023 they can now ALSO receive allocations for their design work on the tax-exempt entities listed below. This means many building types that were previously ineligible to participate in 179D now can!
Now eligible tax-exempt entities include:
- charitable organizations,
- churches & religious organizations,
- private schools & universities,
- private foundations,
- political organizations,
- other non-profits,
- Native American tribal governments, and
- Alaska Native Corporations
What are the Benefits of the 179D Tax Deduction?
Size of Improvement
|
Partial Tax Deductions Available Prior to 2023
|
Maximum Tax Deduction 2022
|
Maximum Tax Deduction 2023
|
||
Lighting
|
HVAC
|
Envelope
|
|||
50,000 sf
|
$15.75K - $31.5K
|
$31.5K
|
$31.5K
|
$94K
|
$250K
|
100,000 sf
|
$31.5K - $63K
|
$63K
|
$63K
|
$188K
|
$500K
|
300,000 sf
|
$94.5K - $189K
|
$189K
|
$189K
|
$564K
|
$1,500K
|
Who are Ideal Candidates for the 179D Tax Deduction?
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.
What is the Process for Claiming 179D Tax Deduction?
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 available deductions while following IRS guidance to properly certify the tax deductions. Additionally, our team can help you claim deductions that were missed from prior years.
What Improvements are Eligible for the 179D Deduction?
Taxpayers that invest in ground-up construction or in improvements to their existing buildings are potentially eligible for 179D deductions. Eligible improvements must reduce energy use by making investments in 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 the ASHRAE Standards and certification by a qualified individual.
Building Envelope
Energy efficient construction or improvements to walls, floors, roofs, fenestrations, and doorsHVAC
Improvements relating to energy efficient HVAC systemsLights
Construction or improvements to building lights for energy efficiency179D Tax Insights

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