Issues & AdvocacyCommercial Buildings Tax Deduction
The Energy Policy Act of 2005 (Public Law 109-58) created a new tax incentive for constructing energy efficient commercial buildings. Codified in 26 U.S.C §179D, Section 1331, the Commercial Building Tax Deduction (PDF), established a tax deduction for expenses related to the design and installation of energy-efficient commercial building systems.
The AIA strongly supported this provision and played a major role in its legislative development. AIA also helped form a partnership with other concerned stakeholders and through this partnership, developed implementation recommendations for building owners to obtain this tax deduction. In 2008, the AIA helped pass legislation to extend the life of the deduction so that it covers property placed in service by December 31, 2013.
"Architecture, engineering, and construction firms are eligible for valuable tax incentives for work they are already doing. As innovation, trying new ideas, and improving energy efficiency is at the core of the AEC industry, there is no reason for them not to take advantage of 179D."
FORMER HOK GROUP CFO AND ALLIANTGROUP STRATEGIC ADVISORY BOARD MEMBER
"I want to thank alliantgroup for bringing together architects, engineers, and builders for the purpose of gaining a better insight into the current issues we are dealing with and to helping firms grow their practice."
-JAMES E. FRANKEL
FORMER GENERAL COUNSEL OF AIA (NY), SENIOR PARTNER ARENT FOX LLP, ALLIANTGROUP STRATEGIC ADVISORY BOARD MEMBER
Energy-Efficient Commercial Building Tax Deduction (179D)
We are very pleased to introduce you to alliantgroup the Official Sponsor of 179D for the AIA
The Energy Policy Act of 2005 created section 179D to address and improve the substantial portion of U.S. energy consumption attributable to commercial buildings. Many architects, engineers, and design-build contractors are overlooking the 179D deduction because they may not know it exists or that they could potentially qualify. In many cases, they might be claiming small amounts and not everything they are eligible for.
"AIA’s goal in partnering with alliantgroup is to ensure that all AIA member firms are made aware of the powerful 179D incentive – a deduction which can provide powerful cash infusing funds to help firms hire additional employees, competitively price jobs, and expand their practice," said Mickey Jacob, AIA President.
alliantgroup has helped over 300 AIA member firms claim over $40 million in tax incentives.
Click here to see what your 179D deduction could be!
alliantgroup’s in-house experienced professionals in the architecture industry are experts at identifying and delivering 179D incentives. Their team of high powered experts includes Dean Zerbe and Dawn Levy, former Tax Counsels to the U.S. Senate Finance Committee who were instrumental in writing the EPAct tax legislation working under Senators Baucus and Grassley; Mark W. Everson, who was the IRS Commissioner when section 179D was passed in 2005 and who oversaw the administration of the tax code; Jim Ramstad, former Congressman from Minnesota who served as Chairman of the IRS Oversight Committee; Bob Pratzel, the former CFO of HOK Group who serves on alliantgroup’s advisory board; Jaime Frankel, former general counsel for the AIA who serves on alliantgroup’s advisory board; as well as an extensive staff of architects, designers, engineers, accountants, and tax attorneys.
With offices and professionals across the country, alliantgroup serves architecture firms ranging in size from top-tier through small to mid-size firms. alliantgroup marries the principles of tax with the science of architecture and engineering to deliver a best-in-class study.
For more information on the deduction and allocation, use these helpful links: