179D Energy Efficient Commercial Building Deduction

A Federal Tax Incentive Generating Additional Deductions up to $5.65 per sq ft. Our business advisors, rich in experience, assist you in formulating and implementing success-driving strategies.

179D Deduction Benefits and Requirements

When constructed with prevailing wage and apprenticeship requirements, the §179D Deduction starts at $2.50 per square foot when compared to the ASHRAE Reference Standard 90.1 that was in effect for four years prior to the in-service date of the building.

If prevailing wage requirements are not met, the §179D Deduction is $0.50 per square foot. Each additional percentage of energy reduction will increase the deduction by $0.02 per square foot, up to $1.00 per square foot.

Prevailing Wage Requirements to Maximize the §179D Deduction for 2023 Projects and Onward. Projects started prior to January 30, 2023, do not need to meet prevailing wage rates to qualify for the $2.50 to $5.00 higher tier of §179D Deductions.

The §179D Deduction can be taken every three tax years when the building is placed in service in 2023 and thereafter (four in some situations)

Architects, engineers, and others can benefit for design work on tax exempt entities

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Our Service

Our team of engineers and tax professionals will perform free assessments to prequalify your project. Our §179D Deduction service includes:

Performing modeling and building inspections

Assisting with amended tax returns or filing a change in method of accounting

Reviewing construction documents

Facilitating project scope interviews with the design team

Preparing certificates of energy efficiencies

Obtaining allocations from government building owners

Coordinating with your tax preparer

Providing complimentary audit support success image

Our Values

Performs free preliminary analysis for all service lines to guarantee outstanding values.

§179D Deduction For 2022 And Prior

01.

For buildings placed in service from 2006 through 2022

The §179D Deduction allows building owners to claim up to $1.80 per square foot. In the case of a taxable year beginning after 2020, the $1.80 per square foot will be adjusted by inflation ($1.82 for 2021 and $1.88 for 2022). To qualify, newly constructed or renovated buildings must meet or exceed the ASHRAE standards for HVAC, building envelope and interior lighting.

02.

The project must be completed on or after 2006 through 2022.

Projects started prior to January 30, 2023, do not need to meet prevailing wage rates to qualify for the $2.50 to $5.00 higher tier of §179D Deductions.
Any construction or installation started on or after January 30, 2023, must meet prevailing wage rates to qualify for the $2.50 to $5.00 tier of deductions.

03.

The building must be a government project, including:

• K-12 Schools, higher education, and libraries.
• Municipal buildings (police, fire stations, courthouses, and more).
• Public offices, and parking garages, airport terminals.

We Value Collaboration

Central to our values is a deep conviction in the effectiveness of collaboration. We acknowledge that genuine progress and innovation arise when individuals and organizations combine their strengths, ideas, and resources for a shared goal.

Our dedication to collaboration goes beyond mere value; it serves as a guiding principle shaping our approach to every endeavor. We are firm believers that through collective effort, we can achieve much more than what is possible in isolation.

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