Energy Efficient Buildings Analysis

179D TAX DEDUCTION

Turn Energy Efficiency Into Tax Savings

Our clients continue to see substantial value in the tax benefits available under §179D of the Energy Policy Act of 2005 (EPAct), which the Inflation Reduction Act has significantly enhanced. As of 2023, qualifying energy-efficient commercial buildings may now receive a deduction of up to $5.00 per square foot, depending on the level of energy savings and prevailing wage requirements. Additionally, the deduction can still be allocated to architects, engineers, and designers of government and certain tax-exempt buildings. MSC can help you navigate the updated qualification criteria, ensure proper certification, and maximize your benefit—schedule a consultation with our team to get started.

Your Trusted Advisors for Maximizing Energy Efficiency Tax Incentives

MS Consultants is your partner in navigating the complex landscape of energy efficiency tax incentives.

179D DEDUCTION

Maximize Tax Benefits for Energy Efficient Commercial Buildings

The Inflation Reduction Act of 2022 brought significant changes to the §179D deduction for energy-efficient commercial buildings:

For projects placed in service before January 1, 2023, achieving a 50% reduction in energy consumption from government benchmarks in areas such as interior lighting, HVAC, and building envelope qualifies for the deduction.
Post January 1, 2023, the Prevailing Wage & Apprenticeship (PWA) test determines deductions. The energy consumption reduction requirement has been lowered to 25%. Deductions range from $2.50/SF to $5.00/SF. If PWA requirements are not met, deductions range from $0.50/SF to $1.00/SF.

Available to:

45L TAX CREDIT

Claim Significant Tax Credits for Energy Efficient Residential Properties

Benefit from the extended and expanded §45L tax credit for residential properties:

Residential properties of 3 stories or less, sold, leased, or rented by December 31, 2002, are eligible for a $2,000 per unit credit.
Beginning in 2023, the IRA of 2022 (Act) provides an increased 45L tax credit of $2,500 for single family and manufactured homes when constructed according to the standards set by the ENERGY STAR Residential New Construction Program or the Manufactured Homes Program.
The Act also provides an even higher 45L tax credit of $5,000 for single family and manufactured homes when they are certified as a DOE Zero Energy Ready Home (ZERH).

MSC

What We Promise:

Over 600 national and regional CPA firms trust MSC’s expertise to help navigate the complexities of cost segregation studies. We are fully committed to our clients’ success—providing partner-level guidance, in-depth audit support, and exceptional service throughout every phase of a project.

Experience and Credentials: MSC has a proven 30-year track record, with engineering and tax expertise, and experience across various property types and industries.
Audit Support: MSC stands behind their work and takes great pride in the quality they deliver. All MSC engagements include complimentary lifetime audit support.
Comprehensive Analysis: MSC performs site visits and deliver thorough reports that go beyond just software-generated results.
Integration with Tax Strategy: MSC collaborates with your CPA or tax advisor to align the study with your broader tax planning goals, including step-ups, 1031 exchanges, and repairs vs. capitalization considerations.