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179D Incentives

Achievable energy reduction goals that generate material deductions.

"TCC found every incentive we didn't realize we were missing." - Senior Director, Tax, Fortune 100 Technology

Eligible Costs

Enacted under the 2005 Energy Policy Act, this deduction applies to properties that achieve significant energy savings. This extends to commercial, residential (four floors or more) and government-owned buildings, as well as parking garages. In an effort to encourage responsible energy usage, this act allows for a tax deduction of up to $1.80 per square foot. That deduction stems from reductions in the energy costs associated with the building envelope, HVAC sytem and interior lighting.

Approach

Our engineers have the depth of experience to generate sophisticated energy models to document a property's energy savings. From the initial site visit, through the calculation process, our proprietary IRS-approved platform streamlines the process and limits business disruption. All cost analyses are confirmed with the building's contractor before being submitted for certification. Where advantageous, the deduction can be applied retroactively, without the need to amend returns.

The Benefit

The size of the deduction will vary according to the amount of energy savings achieved. Upon documenting a 50% savings, the building will qualify for a deduction of $1.80 per square foot. If that level of savings is not met, individual systems can qualify for a $0.60 per square foot deduction once the energy reduction threshold for each system (HVAC, Lighting, Building Envelope) is met. In the case of government owned buildings, the associated architects, contractors and engineers can benefit from the deduction.

TCC Difference

Delivering an effective 179D analysis entails documenting material value without burdening our client. Our engineers directly manage the entire process, methodically identifying costs and savings that can be supported with contemporaneous data. Our investment in technology creates tangible efficiencies that greatly reduce turnaround times. TCC’s fully supported analysis can be delivered on a tight schedule to allow for meeting certain filing deadlines.