179D Energy Efficient Certifications
With demands for energy efficient technologies being the focus of much-heated political debate, the United States government has recently implemented several incentive programs which could greatly benefit business owners. One such program, known as the Energy-Efficient Commercial Buildings Tax Incentives, or simply the 179D, targets commercial properties and rewards business owners for meeting certain energy efficient standards in their commercial buildings. These incentives come in the form of tax credits based upon the overall size of eligible commercial space.
What Is the 179D Tax Incentive Program?
The 179D is a program that specifically applies to commercial spaces but excludes any form of housing space, be it personal or investment. The 179D tax deductions are applied based upon the square footage of all commercial space which meets specific energy efficiency standards.
How Is This Incentive Awarded?
Under the 179D, the government awards up to $1.80 in tax deduction per eligible square foot of commercial space. This amount is split among three categories: HVAC (heating, ventilation, and air conditioning), lighting, and building structure. Assuming a building has met efficiency standards in all three categories, the maximum award of $1.80/sq. ft. will be applied. If a building meets only some of the efficiency standards, partial deduction may still be earned.
Who Is Eligible for 179D?
Any commercial space can potentially be eligible to receive tax incentive under the Energy-Efficient Commercial Buildings Tax Deduction. While it is typical that many businesses refurbish old buildings to maximize their eligibility, buildings constructed within the last 5 years have a strong chance of already qualifying for a partial award. Designers and architects who implement energy efficient construction into their design may also qualify for this incentive.
How to Claim Tax Incentive
In order to qualify for the 179D, a commercial space must be evaluated by a certified, independent firm. ELB Consulting has years of experience in 179D energy efficiency certification. We have a qualified team of thorough investigators who have a history of finding things that other firms do not. Contact us today for a consultation to see how much you can save.