§179D Analysis

Our clients are increasingly interested in the tax benefits that can be derived from §179D of the Energy Policy Act of 2005 (EPAct). Section 179D allows for immediate deduction for energy-efficient commercial property up to a maximum of $1.80 per square foot. Even better, this deduction can pass on to architects and designers who design efficient government buildings!

Of course, it’s not as easy as claiming that your building is energy efficient and then paying a lower tax bill—there are strict requirements to meet. The improvements in question must fall under certain categories. §179D specifically looks at three areas of the building:

  • Interior lighting systems
  • Building envelope or shell
  • HVAC and service hot water systems

Finally, a qualified building must be certified by an independent, qualified organization such as MS Consultants. We model the buildings in accordance with the National Renewable Energy Laboratory's (NREL) Energy Savings Modeling and Inspection Guidelines, using IRS-approved software to recreate the buildings as closely as the software allows. We then run multiple simulations, and compare the building results to the standards laid out by ASHRAE's Standard 90.1-2001.

The tax and engineering professionals at MS Consultants have been doing §179D analyses since the provision was announced, and we're experts at investigating properties and systems improvements and completing the necessary modeling, simulation, and certification paperwork. And, as our §179D analyses incorporate the same TurnKey Process that the rest of our services do, you can rest assured that we’ll take care of the entire process with as little hassle for you or your clients as possible.

Contact one of our consultants today and find out what sort of tax benefits you could derive from a §179D analysis.