In an attempt to reduce energy consumption and improve energy efficiency of commercial buildings tax deductions are now available to qualifying customers. Section 179D (part of the Energy Policy Act of 2005) of the tax code allows qualifying building owners and businesses to receive an up to $1.80 per square foot tax reduction for their energy efficient buildings.
For a building to qualify, the energy based improvements must be made to the HVAC or interior lighting systems or to the building envelop. Additionally, the enhancements to these systems must surpass ASHRAE 2001 standards for buildings placed into service before 2016—and ASHRAE 2007 standards thereafter.
Qualifying for 179D requires an independent, third-party firm to review the building to confirm the energy savings and potential tax deduction. If AEECI is implementing a project for you, we can arrange for one of our trusted third party firms to generate the proper report which meets the IRS guidelines to ensure our customers can take advantage of 179D.