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 Deduction (179D)
We are pleased to introduce alliantgroup, our Exclusive Partner of 179D and Other Tax Services
The Energy Policy Act of 2005 created Section 179D to address the substantial portion of U.S. energy consumption attributed to commercial buildings. Many architects, engineers and design-build contractors currently overlook 179D because they do not know it exists, let alone know they are potentially eligible for this valuable incentive. In many cases, they might be claiming small amounts of the deduction, but not everything they are fully entitled to.
To better serve our clients and ensure they are claiming the full extent of their deduction, alliantgroup has designed its own state-of-the-art software interface to use with EnergyPlus, the energy simulation program developed by the U.S. Department of Energy and approved for use in Section 179D. Specifically designed for engineers to capture the most accurate and specific calculations, epFace provides increased user production and speed, offering engineers the ability to import building plans and create constructions upon opening the program. Its increased fluidity brings tremendous speed to the modeling process and provides a large 2D and 3D workspace. No other provider can offer state of the art software that ensures a more accurate analysis of energy savings, resulting in larger deductions for our clients.
"The AIA is dedicated to partnering with leading organizations to provide the best services to our members,” said AIA President Helene Combs Dreiling, FAIA. “With this guiding principle in mind, we chose alliantgroup to be the Exclusive Partner of 179D and other corporate tax services. We encourage all of our members to reach out to this organization for expertise on 179D and other corporate tax issues."
alliantgroup has helped AIA member firms claim over $125 million in tax incentives.
Click here to see what your 179D deduction could be!
alliantgroup’s in-house architecture professionals are experts at identifying and delivering 179D incentives. Their team of seasoned experts includes Dean Zerbe and Dawn Levy, the 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 oversaw its administration in the tax code; Steven Miller, former Acting IRS Commissioner; Bob Pratzel, former CFO of HOK Group and current alliantgroup Advisory Board member; James Frankel, former General Counsel for the AIA and current alliantgroup Advisory Board member; 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: