The 179D Energy Efficient Commercial Buildings Deduction can provide building owners, architects, and engineers with up to $5.36 per square foot for improving the energy efficiency of new buildings and retrofit projects.
Qualifications
Components
Lighting
HVAC
Building Envelope
Who Benefits
Designers (ex. Architects, Engineers)
Building Owners
Qualified Buildings
Government-Owned
Tax-Exempt Owned
Privately-Owned
How 179D can increase your tax savings
Elementary School
GOVERNMENT-OWNED NEW CONSTRUCTION
220,461
SQUARE FOOTAGE
$1,181,671
DEDUCTION
$460,851
TAX SAVINGS AT 39%
WAREHOUSE
PRIVATELY-OWNED HVAC Retrofit
312,540
SQUARE FOOTAGE
$334,418
DEDUCTION
$130,423
TAX SAVINGS AT 39%
University Residence Hall
GOVERNMENT-OWNED HVAC/Lighting Retrofit
163,283
SQUARE FOOTAGE
$875,197
DEDUCTION
$341,327
TAX SAVINGS AT 39%
Inflation Reduction Act of 2022 Updates
Lower Eligibility & Sliding Scale
The deduction is changed from $0.60, $1.20 or $1.80 per sq ft to a sliding scale. Now starting at $0.54/sq. ft. for 25% energy reduction, increased by $0.02 per percentage point in energy reduction, up to $1.07/sq. ft. at 50%.
Renewed Eligibility
Future retrofit projects will be eligible for a 179D deduction again in three years for privately-owned buildings, four years for tax-exempt buildings.
Wage and Apprenticeship Requirements
For those meeting the Prevailing Wage Requirements and Apprenticeship Requirements, the deduction now starts at $2.68 for 25% energy reduction, increased by $0.11 per percentage point in energy reduction, up to a maximum of $5.36 at 50%.
Qualified Retrofit Plan
The interim lighting rule will be replaced with the Qualified Retrofit Plan. Instead of comparing to the ASHRAE standard, the QRP will compare the upgraded lighting to the existing lighting.
Addition to Government-Owned
In addition to government-owned buildings, all tax-exempt entities may allocate the deduction including religious, charitable, educational, political, and Native American entities.
Renewed Reference Standard
The ASHRAE Standard is renewed as 90.1-2007 until the end of 2026, which makes certification significantly easier to achieve for the next three years.
Spur Savings with 179D
Commercial building owners, architects, engineers, and contractors who design buildings with Energy-Efficient Commercial Building Property (EECBP) can save with 179D by being awarded a federal tax deduction.
Why CTI for 179D?
Carrier Hourly Analysis Program
The Department of Energy provides numerous programs for computing the 179D deduction. Carrier Hourly Analysis Program is one of the first approved programs and to this day is regularly used in the design field. Because of its widespread use, we are confident we are getting the most accurate results.
Onsite Surveys
Gathering clear and concise data is important when surveying buildings. Surveys are completed so that there is no question that the energy-efficient measures designed have been installed. Our detailed surveys have found that they are supportive of an IRS Audit.
Certifying Professional Engineers
It is important to have input from professional engineers who are active in the field. Their support ensures our modeling is continuously evolving with the current market.
Optimize Tax Savings
Your goal is to maximize your depreciation potential and cash flow. You never know what opportunities you may miss or what mistakes might cost you if left to your own devices.
We have been pleasantly surprised at the substantial dollar-for-dollar credits that CTI has captured. There is no effort on our part, we just reap the benefits. It is so easy and simple process with CTI. It’s a no-brainer...
