Overview of Section 179D Tax Deduction Services

This tax deduction was created to encourage investments in energy-efficient improvements for commercial buildings, making it a win-win for both your finances and the environment. It allows you to claim up to $5.00 per square feet for improvements that achieve 50% energy savings. 

Our team of experts will work closely with you to ensure that you make the most of this opportunity and maximize your potential savings.

How the Section 179D Tax Deduction Works (3-Step Process)

• Energy-Efficient Upgrades Evaluation: The first part of the process is a thorough assessment including a physical visit to the building. Various components, such as lighting systems, HVAC systems, and building envelope improvements, will be checked to determine their energy-saving potential. The evaluation is to ensure that the upgrades meet or exceed the energy efficiency targets set by the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) standards.

• Claiming the Tax Deduction: Once the energy improvements have been assessed and certified, it is time for a bit more paperwork. These include allocation letters confirming ownership of property, as well as a certification of the energy reduction according to ASHRAE standards. 

Who is Eligible to Claim the Section 179D Tax Deduction?

The Section 179D Tax Deduction is available for a wide range of businesses, including commercial building owners, designers, architects, and even government entities. If your building underwent energy-efficient upgrades between 2006 and 2022, you may be eligible to claim this deduction.

Additional standards apply for buildings that begin construction before or after January 1, 2023. 

Nonprofits and tribal lands also qualify for the 179D Deduction. 

ASHRAE Standards and Section 179D Tax Deduction

ASHRAE standards play a critical role in the Section 179D Tax Deduction process. These standards set the energy efficiency benchmarks that your building upgrades must meet to qualify for the deduction. Our team is well-versed in ASHRAE standards and will ensure that your energy improvements align with the necessary criteria, maximizing your chances of claiming the deduction.

Who Is Eligible for Section 179D Tax Deduction?

There are two main categories of eligibility for the Section 179D Tax Deduction:

1. Qualified Commercial Buildings: The primary group eligible for the Section 179D Tax Deduction includes owners of commercial buildings. This encompasses a wide range of property owners, from businesses and corporations to developers and real estate investors. If you own a commercial building and have implemented energy-efficient improvements, you could be eligible to claim the deduction.
2. Designers of Energy-Efficient Commercial Building Property (EECBP) or Energy-Efficient Building Envelope Retrofit Property (EEBRP) Installed in Buildings Owned by Specified Tax-Exempt Entities: This category extends eligibility to designers of energy-efficient improvements installed in buildings owned by specified tax-exempt entities. These designers, including architects, engineers, and contractors, can claim the deduction if they have created energy-efficient systems or building envelope retrofits that meet the necessary criteria.