179D Federal Energy Tax Deductions

 

REQUIREMENTS

• Facility must reduce total annual energy and power costs with respect to the interior lighting, systems, heating, cooling, ventilation and hot water systems by 50%
• Partial deductions allowed for 25%-40% reduction of lighting power density
• Energy simulation is required by third-party qualified engineering firm to justify the deduction.

 

HOW MUCH IS THE DEDUCTION?

• Partial deduction (interim lighting): $0.30 – $0.60 per sq. ft. for 25% – 40% reduction in lighting power density (50% in case of warehouse).
• Abandonment Deduction: Additional deduction may be applied based on remaining lifespan of current lighting.
• Maximum Deduction: $1.80 per sq. ft. for 50% reduction in total annual energy and power costs for lighting, HVAC, and building envelope (compared to a reference building that meets the minimum requirements of ASHRAE Standard 90.1-2001); not to exceed the amount equal to the cost of energy efficient commercial building property placed in service during the taxable year.


WHO QUALIFIES?

• Building owner at the time of building improvements
• Public buildings: The owner may allocate the deduction to the designer (architect, engineer, contractor, environmental consultant or energy services provider) for the tax year that includes the date the property is placed in service.


WHAT IS THE TIME FRAME FOR ELIGIBILITY?

• Units must be completed or renovated after December 31, 2005 but before December 31, 2013
• Project completed in current is a deduction.
• Project completed in past years qualify as a credit.


WHAT IS NEEDED?

• Index page (drawing list)
• Manufacturer Specs and all lighting info (current and replacement)
• Code Analysis (square footage breakdown)
• Lighting Plans, Fixture Schedules, and evidence of bi-level switching
• Utility Rates


HOW CAN I CLAIM THE DEDUCTION?

• The deduction is taken on the “Other Deductions” line of the taxpayer's return
• Tax returns may be amended going back three consecutive tax years



*FREE FEASABILY STUDIES ARE OFFERED TO DETERMINE POTENTIAL FOR ELIGIBILITY*



For more information please Contact Us.

IRS Detailed Description: http://www.irs.gov/irb/2006-26_IRB/ar11.html

Stateline Eco Electric Corp.
phone (541) 508-3098
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