What Is The 179D Tax Deduction?
The 2005 Energy Policy Act created Section 179D which allows property owners and developers a significant federal tax deduction to offset a portion of the cost associated with energy-efficient components used in the construction of new and remodeled commercial buildings.
Of direct, significant importance, Section 179D permits architectural firms, designers, and engineers to utilize the same deduction for their work in the building of, remodeling of, or additions to government-owned buildings.
The 179D tax deduction offers up to $1.80 per square footage of the building, depending on how the qualifying building was constructed.
179D Energy Efficient Commercial Building Tax Deduction Information for Architects, Engineers and Designers
Tor Energy is the leader in EPAct 179D studies with hundreds of satisfied customers who have collectively enjoyed millions in tax deductions. Contact us for a fast, risk free analysis and find out if you are entitled to this little known tax deduction.
Does The Architected, Engineered or Designed Property Qualify for A Deduction?
Potentially any building constructed since 2006 and all LEED certified buildings will qualify for a deduction. Qualifying properties must reduce energy use by 50% as compared to a 2001 energy standard. Typically this improvement is easily attained as building components continue to improve and become more energy efficient.
What is the Process and Cost to Conduct An EPAct 179D Study?
After our risk free analysis determines that the cost of the study is significantly less than the tax deduction you will receive, licensed engineers conduct highly specialized, on-site surveys of your building. Once complete, the data is modeled in our energy modeling software and analyzed by the lead engineer. A detailed report is created and published in both electronic and bound hard-copy, validating your building’s energy-efficiency and fully supporting your 179D savings. This report is delivered to you and to your accountant so that the deduction can be filed. The cost of the study is determined by the hours required to conduct the study and create the report, and to travel to the building site. We will provide an engagement letter outlining the cost and your expected tax deduction. The cost of the study will in every case be far lower than the deduction you will receive, or the study is not worth undertaking. We will tell you that upfront.
Why Tor Energy?
Experience and knowledge matter. Since 2008 Tor affiliates and engineers have been conducting EPAct 179D studies for satisfied clients nationwide. Our up-to-date tax knowledge, computer modeling capabilities, and construction management expertise ensure each of our clients obtain maximum benefit for each property. Our experience gathering all necessary information and completing all relevant IRS forms guarantees the job is done right the first time and that you receive the deduction that you deserve.
The designer of a 100,000SF building may be entitled to a tax deduction of $180,000.
In order to benefit from 179D tax savings, a business must certify its energy-efficiency via an independent, third-party engineering study. Tor Energy provides you with a Risk Free Analysis to see if undertaking the study is worthwhile for you.