Key tax incentives enacted over the last several years have focused on encouraging businesses to incorporate energy efficiency into their operational plans. One particular tax incentive relates to the design and construction of an energy-efficient commercial building property. In August of 2005, Congress passed the Energy Policy Act (EPACT) of 2005 to encourage property owners to build energy efficient buildings in order to promote a reduction in energy consumption.

The legislation was set to expire at the end of 2008, however the Emergency Economic Stabilization Act of 2008 (HR-1424), extends the benefits of EPACT 2005 through December 31, 2013. This legislation, under the Energy Efficient Commercial Building Deduction (Internal Revenue Code Section 179d) establishes a tax deduction which allows taxpayers to take an immediate expense for the cost of the property that would normally be recovered through depreciation over the life of a building, often more than 30 years.

Our team of certified energy managers and our experience with the Energy Efficient Commercial Building Deduction make Building EnergetiCxan excellent choice to perform the required analysis by 179d. Our team can provide the following 179d services and will provide the necessary documentation and reporting to comply with the tax code.

Building Energy Simulation
Building EnergetiCx will prepare the building energy simulation model required to demonstrate the whole building energy savings comparing the proposed building to the ASHRAE 90.1-2001 ”baseline building”. Our software is approved by the US Department of Energy as required under the tax code.