179D Tax Incentives

Commercial Building Energy Efficiency
Tax Deduction

A federal tax incentive to encourage buildings to incorporate energy efficient solutions.

Maximize Benefits With 179D

Schedule a free consultation

What is

179D Tax Deductions

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.

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How

179D Tax Deduction Works

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:

  • Building envelopes
  • Heating, Ventilation, and Air Conditioning (HVAC).
  • Interior lighting systems

Who can

Claim 179D

Architects, engineers, and contractors who work on design or installation aspects of new or renovated government-owned buildings and structures.

Owners and tenants of commercial buildings who have built or installed the improvements.

Owners of four-story or greater residential buildings who have built or installed the improvements.

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K-12 Schools

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MILITARY BASES

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Prisons

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COURTHOUSES

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UNIVERSITIES

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LIBRARIES

AIRPORT

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CITY PARKS

Who can

Claim 179D

Architects, engineers, and contractors that work on new or renovated government-owned buildings and structures.

Owners and tenants of commercial buildings who have built or installed the improvements.

Owners of four-story or greater residential buildings who have built or installed the improvements.

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K-12 Schools

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MILITARY BASES

building-icons-09

Prisons

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COURTHOUSES

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UNIVERSITIES

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LIBRARIES

AIRPORT

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CITY PARKS

Calculate Your 179D Deduction

Take our short quiz to estimate the amount of deduction your company may be entitled to

Our Process

The 179D Study Process

With alliantgroup, there is an easy 3-step study process:

1.

Discovery
Assessment

Project List – Identify Buildings, Secure Allocation Letter(s), Obtain Documentation

2.

Qualitative &
Quantitative Analysis

Energy Modeling, Field Inspection, Certification, and Deliver Final Deduction Numbers for Filing

3.

Effective
Reporting

Document Cataloguing,
Summary Drafting, and
Final Report

Case Studies

  • Mechanical contractor renovated cooling towers on subsidized housing – $579,342 in deductions
  • Architecture firm renovating and building 18 new public schools – $930,377 in deductions
  • Program manager renovating 51 buildings including colleges, prisons and hospitals – $13,391,241 in deductions

Case Studies

Mechanical Contractor Renovated Cooling Towers on Subsidized Housing - $579,342 in Deductions

Architecture Firm Renovating and Building 18 New Public Schools - $930,377 in Deductions

Program Manager Renovating 51 Buildings Including Colleges, Prisons and Hospitals - $13,391,241 in Deductions

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 advantage

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.

Risk-free, no-cost preliminary assessment.

Top class staff of licensed engineers in every state who give utmost attention to every aspect of the critical 179D tax deduction.

State of the art cutting edge proprietary software interface that aligns with the US Department energy modeling software used by the IRS.

Highly skilled team of energy modelers who specialize in the three qualifying building systems.

Well established relationships with 8000+ government entities.

Associated with AEC (Architecture, Engineering, Construction) based associations like CFMA, NECA, CICPAC, and ACEC.

FOUND

more than

$3.8 BILLION

IN 179D Tax Deduction

WORKING

WITH OVER

8,000

government entities

certified More

than

20,000

Building

Partnerships

with more than

4000

CPA Firms

179D - Energy Efficient Government Building Deduction

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.

Words From Our Clients

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.

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John Watson

Smith Engineering

Featured in:

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Ready to
get started?

alliantgroup can help determine if your construction project will qualify for the 179D deduction as well as other tax credits and incentives.

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