179D Energy Study for Warehouse Building Owner in Vancouver, Washington

Project Class Life Percent Improvement Contribution Tax Benefit
Lighting  5-Year  $0.34 $50,498.50
Envelope  15-Year  $0.60 $89,115.00
Total  $139,613.50

This manufacturing building, upgraded in 2011, qualified for two of the three energy efficient deductions, envelope and Lighting, maximum 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 10% for the upgrade of the lighting and envelope respectively in 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.