Architects, Engineers, Designers and Performance Contractors

Architects, engineers, and other designers of government owned buildings are eligible to claim Section 179D federal tax deductions for their work designing government owned buildings that have been either newly constructed or retrofitted between 12/31/05 and 12/31/2013. If you have implemented energy efficient designs for government owned buildings, such as public schools, judicial centers, airports, public university buildings, libraries and student housing, you are eligible to receive a federal tax deduction of up to $1.80 per square foot.

Originally passed as part of the Energy Policy Act of 2005, along with IRS Notice 2006-52, and then amplified and clarified in IRS Notice 2008-40, the Section 179D deduction allows for the lead designers of government owned buildings that have either been newly constructed or retrofitted since 12/31/05 to claim federal tax deductions worth up to $1.80 per square foot. As defined by IRS Notice 2008-40, the lead designer of a government owned building or retrofit, for the purposes of the Section 179D deduction, can include architects, engineers, and others designers involved in the design of energy efficient systems installed on government owned buildings.

Qualification for the deduction is based on the energy efficiency of the newly constructed or retrofitted building, as compared to ASHRAE 90.1-2001. This deduction is available for interior lighting, HVAC, and building envelope systems installed as part of new construction or a retrofit placed in service between 12/31/05 and 12/31/2013.

For any newly constructed or retrofitted property that meets a 50 percent energy power cost reduction, as compared to the ASHRAE 90.1-2001 standard, a deduction worth $1.80 per square foot is available. For those buildings that do not meet the 50 percent reduction, there are partial deductions available for the taxpayer.

Sample Project Size
(sq ft.)		 Partial Deductions Total Max. Deduction ($1.80/sq ft.)
Lighting
($.30 - $.60/sq ft.)		 HVAC
($.60/sq ft.)		 Building Envelope
($.60/sq ft.)
50,000 $15,000 - $30,000 $30,000 $30,000 $90,000
100,000 $30,000 - $60,000 $60,000 $60,000 $180,000
250,000 $75,000 - $150,000 $150,000 $150,000 $450,000
500,000 $150,000 - $300,000 $300,000 $300,000 $900,000
1,000,000 $300,000 - $600,000 $600,000 $600,000 $1,800,000

In order for the designer of a government owned building to claim the Section 179D deduction, the Internal Revenue Service mandates that an independent third party be engaged to create an energy study and certification to verify the energy savings used to justify claiming the deduction.

Concord Energy Strategies is America's Leading Section 179D provider. Our team of industry leading multi-disciplinary professionals provide the turnkey services required for your firm to claim the Section 179D deduction nationwide. CES allows your firm to unlock the capital that would otherwise be left trapped inside the walls of the government owned buildings you design.

FOR MORE INFORMATION

To learn more about the Section 179D deduction, and to see if your firm may be eligible to claim substantial federal tax benefits for your government design work, please contact Concord Energy Strategies today! Please call us at 888-897-5445 or email info@concordenergystrategies.com. You can also complete our project feasibility form by clicking here.