179D Federal Tax Deduction

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Find out if you qualify for 179D



 




Commercial building owner
Designer of government-owned building



  

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, offering a tax deduction of up to $1.80/sf to those investing in energy efficient improvements placed in service after December 31, 2005.

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.

Eligible improvements for 179D

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.

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
$30K – $60K
$60K
$60K
$180K
300,000 sf
$90K – $180K
$180K
$180K
$540K

 

“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 an 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
PASADENA CA

Brandon Val Verde, CEPE
Manager» Biography
PASADENA CA

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.