179D Energy Study for a National Guard Building in Iowa

Location – Johnston, IA Square Footage Tax Benefit
RC Building 172,205 $103,323.00
MEPS Building 27,605 $33,126.00
USA REC Building 13,168 $15,801.60
Total Building Cost $152,250.60

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.  Contact ETS for more information.