Maximize Your Savings with the 179D Tax Deduction

Maximize Your Savings with the 179D Tax Deduction

The 179D Tax Deduction, part of the Energy Policy Act, incentivizes energy-efficient design and improvements in commercial buildings.

At Engineered Tax Services (ETS), we specialize in helping businesses leverage this powerful tax deduction to enhance their cash flow and promote sustainability.

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What is the 179D Tax Deduction?

The 179D Tax Deduction allows building owners and designers to claim a deduction for energy-efficient improvements in commercial buildings. 

These improvements can include HVAC systems, interior lighting, and building envelope enhancements (such as roofs, walls, windows, and doors). The goal is to encourage the reduction of energy consumption and promote greener building practices.

Who Qualifies for the 179D Tax Deduction?

The 179D deduction is available to:

  • Commercial Building Owners: Owners of commercial buildings who have constructed or made energy-efficient improvements to their properties.
  • Owners of Residential Buildings (4+ Stories): Owners of residential buildings with four or more stories that incorporate energy-efficient designs.
  • Designers of Government Buildings: Architects, engineers, and contractors responsible for energy-efficient designs in buildings owned by government entities, including schools, libraries, airports, and military bases.

Benefits of the 179D Tax Deduction

  • Up to $5.00 per Square Foot: Depending on the level of energy efficiency achieved and adherence to labor standards, deductions can range from $0.50 to $5.00 per square foot.
  • Increased Cash Flow: Reduce your tax liability and free up capital for other investments.
  • Encourages Sustainability: Promotes energy-efficient building practices and reduces overall energy consumption.
  • Eligibility for Partial Deductions: Even if a building does not meet the full 50% energy savings requirement, partial deductions can be claimed for specific systems like HVAC, lighting, or the building envelope.

Success Stories

ETS has helped numerous clients achieve significant tax savings through the 179D deduction. Here are a few examples:

How ETS Can Help

ETS provides comprehensive services to ensure you maximize your 179D tax deductions:

Energy Analysis: Conduct a detailed energy analysis of your building to identify qualifying improvements.

Certification: Obtain third-party certification to verify that your building meets the necessary energy efficiency standards.

Documentation: Compile and prepare all required documentation to substantiate your tax deduction claim.

Filing Assistance: Assist with the filing process to ensure compliance with IRS regulations.

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About Engineered Tax Services

Engineered Tax Services is a leading professional services firm specializing in federal, state, and local tax incentives. Our team of licensed engineers, CPAs, and tax professionals combines engineering expertise with tax knowledge to provide unparalleled service and results. 

We are dedicated to helping businesses like yours maximize tax savings and boost cash flow.

Meet George Matar II: Director of Operations – Energy and R&D

George Matar II is the Director of Operations at Engineered Tax Services, where he leads a team of tax experts and engineering professionals. With over ten years of consulting experience and a degree from the University of Miami, George specializes in Energy Tax Incentives, R&D Tax Credits, and Historic Preservation Tax Incentives.

 

Get Your Free 179D Analysis

Unlock the full potential of the 179D Tax Deduction with ETS. Contact us today for a no-cost, no-obligation consultation to discover how much you can save.