179D Benefit and Cost Segregation for an Auto Dealership in Omaha Nebraska

$756,076.76 in Additional Tax Savings

Private Buildings and Owner Benefits


By applying cost segregation, property investors accelerate depreciation, reduce tax liability and increase their bottom line. This aids in future benefits via abandonment, repairs, routine maintenance, and overall asset management. ETS performs hundreds of cost segregation studies on a monthly basis for property owners, providing a detailed engineering review of assets including special-purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to special purpose construction.

Study TypeAccelerated Tax
Previous Non-ETS Cost Segregation Analysis$514,880.00
ETS Revised Cost Segregation Analysis$716,999.96
179D Energy$39,076.90
Total Building Cost $756,076.76

% amounts relate to how much was reallocated from the depreciated basis

Cost Segregation is based on a 40% tax bracket for federal and State Taxes and performed on the ADR Asset Depreciation Range. Financial benefits are realized by maximizing net present value through deferring tax payments and using increased cash flow to strengthen your portfolio or scale your business. The tables above identify the difference between a cost segregation study and traditional 39.5 year capitalization. The line graph (if shown) demonstrates the impact of investment cash.

179D Energy Tax Benefit for a Parking Garage Owner

LocationLightingSquare FootageAccelerated Tax Benefit
Peoria, AZ $0.6040,920$24,552.00
Helenda, MT $0.6091,725$55,035.00
Temecula, CA $0.60135,380$81,228.00
Brooklyn, NY$0.60135,901$81,540.60
Davie, FL$0.60258,242$154,945.20
Total  $397,300.80
 

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.

179D Energy Study for a Parking Garage in Davie, Florida

$154,945.20 in Total Realized Tax Savings


LocationLightingSquare FootageTax Benefit
Davie, FL $0.60 258,242$154,945.20
Total $154,945.20
The facility utilizes a variety of lighting fixtures throughout the structure. The qualifying parking areas have automatic time clock on/off controls integrated into the electrical panels to conserve energy.
 

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.

s, 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.

179D EPACT & Disposition Studies for a Parking Garage in Louisiana

Study Type PercentageSquare FootageBenefit Amount
Disposition/Abandonment N/A N/A$94, 259.12
179D 66.14% 260,000$156, 000.00
Total $250, 259.12

The qualifying interior lighting systems that were incorporated into the building were found to meet and exceed the requirements for EPAct 2005. The lighting systems incorporated into the building were found to reduce the lighting power density by a 66.14%.

Upon further evaluation, ETS identified and assigned value to the building improvements for lighting that have been removed and replaced to enhance energy efficiency, maintain savings, and improve the quality of the lights. The retired assets were identified, valued, and discounted for the depreciation taken.

 

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.

 

Disposition

When you undertake demolition or renovate a building and tear out old lighting, HVAC units, and other building parts, these assets are disposed of. As such, their book value can be treated as a business deduction. Tangible personal property within a structure can be written off when a building is demolished or remodeled.  The value must have been identified prior to the demolition and it must not have been purchased with the intent to demolish. 

179D Tax Benefit for an Architectural Firm

179D video case study
LocationSquare FootageTax Benefit
Colorado State University – Aspen Hall Student Housing66,392$19,505.60
Colorado State University – Indoor Practice Facility66,267$79,520.40
North Aztlan Community Center48,741$87,733.80
Total $286,759.80
“Thank you for preparing our EPAct certifications for the Aztlan Center, the Indoor Practice Facility, and Aspen Hall. I was very pleased with the thoroughness and quality presentation of the final product. In addition, I found the staff at Engineered Tax Services to be professional, patient and responsive during the entire process that was foreign to us. We felt strongly that we, as professionals, can have a large influence in the environmental impact of the facilities we design. We greatly appreciate your help in achieving these goals and have already begun to see the rewards of your efforts.” Michael L. Aller, AIA, LEED APAller Lingle Massey ArchitectsFt. Collins, Colorado
 

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.

 
 

179D Energy Tax Benefits for Public Schools

LocationSquare FootageTax Benefit
High School: Cedar Creek, TX262,134$504,406.26
High School: San Marcos, TX343,037$370,479.96
High School: Indianapolis455,018$546,021.60
High School: Modesto, CA275,939$458,053.80
High School: Greer, SC278,111$500,599.80
High School: Santa Ana, CA320,462$415,087.70
High School: Trussville, AL361,078$628,275.72
Total Building Cost $3,422,924.84

All benefits granted to the designer and their architectural firm 

 

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.

179D Energy Benefit for a Public School Designer in Florida

LocationSquare FootageTax Benefit
Elementary School: Delray, FL40,529$24,317.40
Northboro Elementary School: West Palm Beach, FL243,163$138,183.22
Total $162,500.62
 

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.

179D Energy Tax Benefit for an Architect

LocationSquare FootageAccelerated Tax Total
Adelanto District Office Building 27,700 
Westcreek/Sycamore Elementary School 53,721 
Vista Verde Elementary School 55,329 
Oak Hills High School258,346 
Total $1,006,247.40

“Over the past 3 years, ETS has performed Energy Tax Certification for over a dozen of our firm's projects. As a result, we have been able to generate over a million dollars in tax deductions for the firm. The staff at ETS has been knowledgeable and helpful, taking the time to explain and guide us through the process. I would highly recommend them for 179D certification needs. We will use them again on our next study” Gina Bastianon of Frick, Frick, and Jette Architects 

 

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.

179D Energy Study for a Building Designer in California

LocationLightingSquare FootageAccelerated Tax Benefit
Temecula, CA $0.60135,380$81,228.00
Total  $81,228.00

Lighting systems:

Lighting fixtures are equipped with (2) 54 watts High Output T5 lamps and electronic ballast.Lighting fixtures in the stair is wall sconce with one (1) 42 Watt compact fluorescent lamps and electronic ballast.The entire parking structure lighting system is controlled by a centralized lighting relay control panel located in the main electrical room. On the roof level, surface mounted high pressure sodium light fixtures are installed under the photovoltaic panels. Pole mounted high pressure sodium light fixtures are also installed to illuminate the general parking area. On the roof level, Solar arrays are installed to capture the sun light during the day and use the stored energy at night.

 

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.

179D Energy Study for a Military Building in Louisiana

Location – Baton Rouge, LASquare FootageTax Benefit
Reserve Center Building132,772$154,015.52
Field Maintenance Shop Building22,965$41,337.00
Total Building Cost  $195,352.52
 

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.