179D Energy Study for a Manufacturing Facility in Princeton, MN

Location Improvement % Contribution Tax Benefit
Princeton, MN – 30,280 sq. ft. $54,504
Lighting %31.38
Envelope  %8.07
HVAC  %10.68
Total Building Cost $54,504

This manufacturing building, completed in September 2010, qualified for all three energy efficient deductions, HVAC, Envelope and Lighting, each system provided for a tax benefit of $0.60 each, per square foot. Additionally, the combined energy efficient upgrades in the building result in a minimum of 50% annual energy savings, when compared to similar  reference buildings.

179D Energy Policy Act

The 179D energy certification calculates the tax deduction achieved from the installation of energy-efficient assets, including HVAC, building envelope, and lighting. The building may qualify for up to $1.80 per square foot ($0.60 per square foot for each system); however, partial deductions are allowed for lighting.  The 179D energy deduction is available for newly constructed or energy renovated commercial buildings as well as apartment buildings 4 stories or more. Commercial property owners who pay taxes can claim the benefit with the exception of government-owned buildings where the tax deduction may be allocated to the designer. In order to qualify for these deductions, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.