179D Tax Deduction

Concord Energy Strategies stands ready to provide all services needed for you to receive a Section 179D energy efficient building deduction of up to $1.80 per square foot for your commercial properties. Candidates eligible for the Section 179D deduction include:

  • Architects, engineers, ESCOs, and designers of energy efficient municipal building projects
  • Owners of energy efficient commercial properties built or retrofitted since 12/31/2005

We also partner with other professionals whose clients may be eligible for the deduction, including CPAs, general business advisers, and other real estate advisers.

A unique feature of the Section 179D deduction is that it allows primary designers of energy efficient municipal buildings or retrofits to receive the deduction. Eligible architects, engineers, ESCOs, and designers may receive up to a $1.80 per square foot tax deduction for municipal design projects.

To qualify for the Section 179D tax deduction, the IRS requires an independent, third party energy tax study.

Concord Energy Strategies is qualified to conduct the IRS mandated independent energy tax study of your building or subsystems. We provide the required certification and documentation for you to qualify for the Section 179D tax deduction.

Section 179D Details

The Energy Policy Act of 2005 enacted Internal Revenue Code Section 179D. The Energy Efficient Commercial Buildings Deduction, originally created as part of the EPAct of 2005, is usually known simply as Section 179D. The federal tax deduction is calculated based on the energy efficiency of a commercial building, as compared to a 2001 benchmark ASHRAE 90.1-2001.

The maximum deduction is $1.80 per square foot; however, within this deduction there are three potential subsystem deductions:

  • HVAC: $0.60 per square foot
  • Interior Lighting: $0.60 per square foot
  • Building envelope: $0.60 per square foot

Energy efficient buildings that qualify for substantial tax deductions related to lighting, HVAC, and the building envelope through Section 179D include structures of more than 20,000 square feet that have been put in service between December 31, 2005 and December 31, 2013 and are:

  • New commercial and municipal buildings
  • Retrofitted buildings
  • LEED buildings

The total federal tax deduction available is $1.80 per square foot for any newly constructed or retrofitted commercial buildings that meet an energy efficiency threshold as outlined by the DOE and IRS; i.e., a building that achieves a 50 percent reduction in total annual energy and power costs through the above three subsystems.

Benefits

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

For a free consultation please contact us today:
Phone: Toll-Free (888) 897-5445 or (502) 384-9078
Fax: (502) 384-9079
Email: info@concordenergystrategies.com