The U.S. Tax Court issued a precedent-setting opinion on IRC sec. 179D for alliantgroup’s client.
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This form is created for R&D tax credit landing page.
Fill out the form to receive more information
This form is created for R&D tax credit landing page.
You can claim up to $5.65 per square feet of the building worked on. For example, if the qualified building is 100,000 square feet, that could mean up to a $565,000 tax deduction for the work completed.
Architects, engineers, and design-build contractors that work on new or renovated government-owned buildings and structures, for example:
The Consolidated Appropriations Act of 2021 made the Section 179D Energy Efficient Building Deduction permanent and gives business owners and government contractors a tax incentive for energy-efficient improvements to commercial and government buildings.
The Consolidated Appropriations Act of 2021 made the Section 179D Energy Efficient Building Deduction permanent and gives business owners and government contractors a tax incentive for energy-efficient improvements to commercial and government buildings.
Taxpayers who invest in constructing new buildings or improving their existing buildings are eligible for 179D deduction. These investments must be aimed at reducing energy use. The improvements eligible under ASHRAE standards include:
The following are examples from a range of industries:
Project Types Include: K-12 Schools, City Housing, Higher Education, Libraries, Police Stations
Project Types Include: Nursing Schools, Higher Education, K-12 Schools, Hospitals, College Dormitories
Project Types Include: Fire Stations, Police Stations, K-12 Schools
To qualify for the 179D tax deduction, one needs to follow due process. Broadly there are two parts to the 179D study process.
Project List – Identify Buildings Secure Allocation Letter(s) Obtain Documentation
Energy Modeling, Field Inspection, Certification, and Deliver Final Deduction Numbers for Filing
Document Cataloguing, Summary Drafting, and Final Report
Now buildings owned by non-profits and tribal lands qualify for the 179D Deduction. The Inflation Reduction Act has expanded eligibility for more entities.
The tax deduction is available for 3 years from the time of filing an original return.
It depends – the deduction is based on square footage and documentation showing the activities performed on each project. Talk to an expert as soon as possible if you are unsure if your work on a project is eligible.
I was impressed by the time taken to educate me about how the 179D tax deduction could directly impact our business based on our work with energy-efficient projects.
Project Types Include: K-12 Schools, City Housing, Higher Education, Libraries, Police Stations
Building owners or government contractors can take the opportunity to claim a federal tax deduction of up to $1.80 per square foot of a building’s floor area if they install property that reduces energy and power costs. These installations or design efforts need to be a part of the building’s interior lighting systems; heating, cooling, ventilation, hot water systems or building envelope. The deduction is allowed for both new construction and remodeling buildings.
To qualify, the energy and power costs of a building must be reduced by at least 50% or more in comparison to the minimum requirements of “ASHRAE” (American Society of Heating, Refrigeration, & Air-Conditioning Engineers) standard. If the 50% target saving is not met, the provision allows partial deduction of $0.60 per square foot for each of the following components:
With alliantgroup, there is an easy 3-step study process:
Project List – Identify Buildings, Secure Allocation Letter(s), Obtain Documentation
Energy Modeling, Field Inspection, Certification, and Deliver Final Deduction Numbers for Filing
Document Cataloguing,
Summary Drafting, and
Final Report
Former U.S. Congressman, Rick Lazio breaks down how businesses can qualify for the Energy Efficient Building Deduction. Learn why it’s important to have alliantgroup’s support in receiving this deduction.
alliantgroup has continued to be the industry leader in 179D tax credits and incentives. Take a look at some of the key aspects that set us apart from our competition.
179D is a federal incentive intended to stimulate the U.S. economy by rewarding architecture, engineering, and contracting businesses with up to $1.80 per square foot for their work on government owned building property. Work performed on interior lighting, HVAC, or a building’s envelope system can qualify for full or partial benefit.
