The Internal Revenue Code (IRC) Section 179D encourages building owners to invest in energy efficient building improvements by providing a tax deduction. The tax deduction focuses on improving the building envelope, HVAC & service water heating systems, and lighting system. Eligible buildings must provide proper documentation in order to receive the deduction. The design team is eligible to receive the deduction for qualifying Government buildings.
| Full Deduction | Partially Qualified Property | ||||
|---|---|---|---|---|---|
| Envelope | HVAC & SWH | Lighting | Interm Lighting Rule | ||
| Savings Requirements | 50% Energy Cost Savings | 10% energy cost savings | 20% energy cost savings | 20% energy cost savings | 25% lower LPD (50% for warehouses) |
| Tax Deductions* | $1.80/sf | $0.60/sf | $0.60/sf | $0.60/sf | $0.60/sf** |
*All deductions up to the amount listed based on cost of the property.
**Deduction multiplied by the applicable percentage.
Qualified Buildings
- Commercial Buildings (Any Size)
- Apartments (four or more stories)
- Commercial Energy Renovations
Program Expiration Date
- January 1, 2013
Documentation Requirements
Building Momentum Group can assist in documenting your eligible project. Energy modeling is often necessary to earn the full deduction and our Specialists are trained and equipped to provide the documentation needed. Contact Us to learn more.