The Cost Segregation Specialist
FREE EPACT/179D STUDY BENEFIT ANALYSIS
Please fill out the following form to receive a complimentary, no obligation Benefit Analysis that can provide you with an estimate of the potential tax savings that a EPAct / 179D Study could help your company realize.
EPACT / 179D
The Energy Policy Act of 2005 (EPAct 2005) allows taxpayers to accelerate depreciation on the cost of qualified energy efficient commercial building property placed into service after December 2005. Eligible improvements must reduce the total energy costs by a specific amount compared to a reference building under ASHRAE Standard 90.2-2007. A first year tax deduction of up to $ 1.80 per square foot is available for the cost of the energy efficient property including the design and installation. The deduction is based on the total square footage of the building but cannot exceed the original cost of the energy efficient improvements.
Candidates that could benefit from this deduction include:
- Newly constructed buildings encompassing minimally 40,000 square feet
- Renovation projects (especially lighting retrofits)
- Regional and national chains with multiple locations
- Commercial buildings of any size, apartment buildings that are 4 stories or more for lease and commercial energy renovations
On public buildings, like schools, libraries and municipalities, the owner of the building may allocate the deduction to the designer (ie., architect, engineer, contractor, environmental consultant or energy services provider) for the taxable year that includes the date on which the property is placed into service. An architect, engineer or contractor may go back three years to obtain this benefit; meaning that they can look at government buildings that they helped design and that were placed into service within the last three years, obtain an allocation letter from the government and amend their returns to get the 179D benefit.