Can your firm save thousands with 179D?
If your company isn’t leveraging the 179D tax credit, it could be missing out on hundreds of thousands—even millions—of dollars in potential savings. AIA's exclusive partner, alliantgroup, of 179D and other corporate tax services, assists architecture firms with taking full advantage of these incentives and has helped AIA member firms claim more than $280 million in tax incentives.
What is 179D?
The Energy Policy Act of 2005 created the section 179D tax deduction to address the substantial portion of US energy consumption attributed to commercial buildings. Qualifying building owners and businesses to receive up to a $1.80 per-square-foot tax deduction for their energy-efficient buildings placed into service during all open tax years.
In many instances, architects, engineers and contractors often overlook 179D because they are simply unaware of its existence and do not know that they are potentially eligible for this valuable tax deduction.
Who and what qualify for 179D?
Either the owner of a commercial building or architects, engineers, and contractors making energy-efficient enhancements to government-owned buildings at the federal, state or local levels can qualify.
Enhancements eligible for 179D include those made to the HVAC and hot water systems, the interior lighting systems and to the building envelope. In many cases, just making energy-efficient improvements to one of these systems can lead to partial qualification and major value for a qualifying business.
Commonly qualifying buildings include:
- state universities
- town halls
- transportation facilities
- post offices
- military bases
- government offices
- and others
How can I claim the 179D deduction for my work on government-owned buildings?
For companies to receive this deduction on their government-owned buildings, they must secure an allocation letter that allows the government entity to transfer the benefit to the taxpayer. The IRS has specific guidance regarding the information required in the allocation letter, so it is highly recommended that this process be facilitated by a qualified consultant.
How can alliantgroup support my firm in the pursuit of 179D credits?
alliantgroup is a leading provider for section 179D and offers the following benefits:
- A risk-free, no-cost preliminary assessment
- In-house architecture and engineering professionals as well as tax professionals uniquely positioned to identify and deliver 179D tax deductions
- The expertise of Dean Zerbe and Dawn Levy, two former Tax Counsels to the US Senate Finance Committee that were instrumental in the development of EPAct legislation and section 179D
- The guidance of on-staff former IRS executives such as former IRS Commissioner Mark Everson and former IRS Acting Commissioner Steven Miller
- alliantgroup’s own state of the art software interface, epFace, to use with EnergyPlus, the energy simulation program developed by the US Department of Energy and used by the IRS to calculate 179D tax deductions
Testimonials and value to AIA members
"The AIA is dedicated to partnering with leading organizations to provide the best services to our members,” said former 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 $280 million in tax incentives.