RunBrook has helped its clients obtain millions in 179D tax deductions. We will conduct a complimentary assessment to to determine if your projects qualify and estimate what your deduction may be. Based on that complimentary assessment, if you believe that 179D is a good fit, RunBrook will:
Conduct on onsite inspection of your building;
Secure an allocation letter (only applicable to designers of public projects);
Perform IRS compliant building energy models; and
Document the process in a certification report.
Your accountants and financial team can then use this information to reduce tax liability by taking advantage of section 179D of the tax code.
Solutions for Private Buildings - $.60 to $1.80 per sf
Through the Energy Policy Act of 2005 (EPAct), building owners and tenants that perform build-outs can reduce tax liability by taking advantage of section 179D of the Federal Tax Code. Section 179D applies to HVAC, lighting, and envelope improvements made in commercial buildings to enhance energy efficiency. The deduction is worth anywhere from $0.60 to $1.80 per building square foot. The deduction can be claimed retroactively for projects completed between 2006 and 2013. EPAct 179D is a very underutilized deduction because it requires a third party certification and involves building energy modeling and taxation. Also, many building owners dismiss the deduction because they believe improvements must include cutting edge technology. However, all that is really needed are systems that are better than building code. Does your company own warehouse, commercial office space, or manufacturing facilities? Do you have multiple buildings in your portfolio? Are some of your buildings LEED certified? If you answered yes to any of these questions, 179D may be an excellent way to extract additional value for projects that have already been completed.
Architects, Engineers & Consultants for Public Entities can Benefit
If you are an architect, engineer, or a consultant that has done work for public entities including federal, state, and local governments, you can reduce your company's tax liability using EPAct 179D. Since public entities do not pay taxes, they can legally allocate their energy efficiency deduction to you through the "allocation process." Qualifying improvements include HVAC, lighting, and/or building envelope improvements.
Solutions For Public Buildings
The EPAct 179D tax deduction can be claimed by designers of HVAC, lighting, and envelope systems installed for public sector clients. This is done through an allocation process. Since a public entity, whether it be federal, state, or local government, does not pay taxes, the tax benefit can be allocated the the firms responsible for system design. This is done by securing an IRS compliant letter executed by the public entity client. Once the allocation letter is obtained, the designer (architect, engineer, lighting consultant, etc.) can claim the deduction on their corporate tax return. The allocation process is so widely used, that agencies like the general Services Administration (GSA), have a standardize process to guide staff through the required steps. If your company has designed energy efficient system for public entities, RunBrook can help you reduce tax liability.