179D Tax Deduction

About 179D Commercial Tax Deduction

Under the 2005 Energy Policy Act (EPACT), a tax deduction of up to $1.80 per square foot is possible for the business owner or developer. The 179D Tax Deduction specifically applies to those commercial buildings that notably reduce their interior lighting energy costs, as well as heating, cooling, and building envelope. Buildings can partially qualify for $0.60 for HVAC, $0.60 building envelope, and $0.60 Lighting. Walker Reid Strategies can help you from design to certification assuring that you take most advantage of the federal tax incentives for energy efficient construction. Walker Reid Strategies is certified by the IRS to perform all energy analysis and site inspections.

Requirements

Reduction in annual energy costs for three qualifying categories.

• Energy Analysis performed to justify savings.
• Inspection by a qualified Engineer or Contractor in the Jurisdiction.

What Qualifies?

1. Building Envelope: Save $0.60 per square foot for a 10% reduction.
2. HVAC: Save $0.60 per square foot for a 15% reduction.
3. Lighting: Save $0.60 per square foot for a 25% reduction.
   1. Partial credit: 30-60 cents for a 25-40% reduction in lighting power density
   2. Receive $1.20 or $1.80 for meeting requirements in multiple categories.

Who Qualifies for 179D?

• Commercial Buildings (Any Size)
• Apartments, four or more stories, for lease
• Commercial Renovations, Retrofits
• Government Owned Buildings

Who Saves?

• Commercial Buildings (Any Size)
• Building Owner or tenant at the time of the building improvements
• Public Buildings: The owner may allocate the deductions to the Architect, Engineer, Contractor, or Energy Consultant.

Time Frame

Building must be completed or renovated between December 31, 2005 and January 1, 2014.