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Understanding the 179D Process

People often wonder how the 179D certification process works. The process itself is relatively complex, but when working with the right engineering firm, like Walker Reid Strategies, you can rest assured that it will be completed as smoothly as possible.

Various source materials are used to conduct an accurate analysis that leads up to the 179D certification. That source material includes the following:

  • Energy Standards from ASHRAE 90.1-2001
  • Performance Rating Method of Appendix G. ASHRAE 90.1-2004
  • IRS Notice 2006-52 (June 2006)
  • IRS Notice 2008-40 (March 2008)
  • National Renewable Energy Laboratory; Energy Savings Modeling and Inspection Guidelines
  • 2005 California Nonresidential ACM Approval Manual

The following process is used to certify a particular facility for EECBT 179D deduction:

  • Pre-qualifying project to identify its nature and whether or not it is eligible for 179D Energy Efficient Commercial Building Tax Deduction
  • Data is requested, such as building plans, designs, mechanical and electric schedules, and Title 24 reports
  • A site survey is conducted by qualified personnel to confirm the energy efficiency equipment is installed and operational. Equipment is photographed for documentation
  • Relevant data is input into modeling software for ASHRAE Standard 90.1-2001 “Proposed Building” and “Reference Building”
  • Verification of the taxpayer’s building is performed to ensure it meets obligatory provisions of ASHRAE Standard 90.1-2001
  • A comparison of ‘Reference’ model to the client’s actual building is done to establish the efficiency of the structure with regards to the ASHRAE 90.1-2001 Standard
  • All relevant ASHRAE forms are completed
  • A final report is prepared and certified by a professional engineer
  • An internal review of the report is conducted
  • Final report with all necessary documentation is archived
  • The final report is issued to the client

The 179D certification process is an opportunity to shrink tax obligations while benefiting from the installation of energy efficient equipment as operating costs are reduced, leading to greater profits as well as corporate sustainability.
You can start your process today, by taking our feasibility survey.