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


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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%.

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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.

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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%.

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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.

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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.

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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.

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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.

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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...
Robert Seawright, President & CEO
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