
We provide complete takeoff and energy modelling support for both 179D & 45L green building tax incentives.
Privately Owned Buildings
Privately owned commercial buildings (industrial, office, retail, healthcare, etc.) and residential buildings at least 4-stories tall that include energy-efficient components and were placed in service as of January 1, 2006 could benefit from the Section 179D Energy Efficiency Tax Deduction. Deductions of $0.60 per square foot are available for interior lighting, building envelope or HVAC and hot water systems that meet certain energy efficiency standards, for a total deduction of up to $1.80 per square foot. The owner of the EECBP is eligible for the deduction—this is typically the building owner but could include tenants who have paid for and are depreciating the EECBP.
Government-Owned Buildings
Most government-owned buildings (both newly constructed and renovated) that are substantially complete in an open tax year can potentially qualify for the 179D deduction. The “designer” of government-owned EECBP is eligible for the deduction. A designer creates the technical specifications for installation of EECBP and could include architects, engineers, general contractors and subcontractors. However, a person that merely installs, repairs or maintains the property is not a designer. Note: projects may have more than one qualifying designer. It is advantageous to pursue this deduction as early in the process as possible. If you were the designer of the EECBP of a government-owned facility placed in service in an open tax year (typically the last three), you could benefit from the 179D deduction.
Section 45L New Energy Efficient Home Credit is a tax credit for properties that meet certain energy efficiency standards. Newly constructed or substantially renovated low-rise multifamily and single-family homes that utilize energy-efficient building components, leading to energy savings of at least 50% over the 2006 International Energy Conservation Code, are eligible for the 45L credit up to $2,000.