Secure your lighting
upgrade tax incentive
Installing energy-efficient LED equipment provides many long-term benefits and saves a substantial cost by reducing energy consumption, but the initial investments are often high. Although LED lighting technology has reduced the payback time, the high up-front cost has restricted businesses from upgrading lighting systems and realizing their energy efficiency objectives.
179D energy efficiency tax deduction can help your business start its energy efficiency transformation and achieve sustainability. Mysupplier has partnered with ICS Tax, LLC to provide end-to-end solutions for eligible projects from the preliminary design stage up until the tax deductions are secured.
What is 179D tax deduction?
179D Energy Efficient Commercial Building Deduction is a federal tax incentive intended to promote new construction and retrofit projects to incorporate energy-efficient lighting, HVAC, building envelope, and water systems in buildings. 179D provides a tax deduction of up to $1.80 per square foot of the building’s floor area if the new equipment installation meets the energy efficiency targets.
Building owners who install interior lighting, building envelop or HVAC that reduces power consumption by at least 50% more than ASHRAE Standard 90.1-2001 (90.1-2007 for properties in service from 2016) are eligible to claim all of $1.80 per square foot of the building’s floor area. Even if buildings cannot meet this requirement, partially qualifying measures can still claim tax deductions up to:
15%
$0.60 per square foot for 15% energy savings on HVAC
25%
$0.60 per square foot for 25% energy savings on interior lighting systems
10%
$0.60 per square foot for 10% energy savings on building envelopes
Are you eligible for 179D?
All commercial buildings including retail and industrial establishments, garages, warehouses, and corporate offices are eligible for 179D energy efficiency tax reduction. In addition to this, four or more than four-story apartment buildings can also claim 179D. However, qualified personnel should verify if the equipment meets the requirement before a business can claim the deductions.
Townhalls, military bases, airports, schools, institutions, offices, and all government-owned buildings qualify for 179D. But since they are traditionally exempted from paying taxes, the owners can allocate the benefits to the company or people responsible for energy efficiency – eligible architects, engineers, consultants, etc.
We can help claim your
179D deductions
Leveraging our expertise in energy efficiency upgrades and our tax consulting partner, ICS Law, LLC, in 179D tax consulting, we coordinate to provide end-to-end solutions on energy efficiency projects to secure your incentives.
How we do it:
1
Utilizing the IRS-approved energy modeling software, we calculate your 179D tax deductions
accurately
2
Our qualified experts assist in
every aspect of 179D to ensure
that the right processes are
implemented
3
Assistance in certifying energy
efficiencies, site visits, and
discussions to help you claim
deductions
4
Secure Allocation Letter's for
government projects to update
the accounting method for the
designers’ claim
5
Review construction documents,
file accounting method changes,
and coordinate with your tax
preparer