A number of different people can take advantage of the Section 179D deduction for an energy-efficient building — and of Concord’s unmatched expertise on the subject.
Because the governmental entities are not subject to taxation, the government owner of a building cannot claim the Section 179D deduction.
However, it can allocate all or part of the tax deduction to a designer who creates the technical specifications that create energy-efficiency in the qualifying property and its subsystems. (The eligible subsystems are HVAC/hot water, building envelope, and lighting.)
This is accomplished by means of an Allocation Letter — a document Concord can prepare for you to have signed by the government owner. Concord can also serve as a liaison between you and your client in securing these signatures through our dedicated government relations staff.
Most firms operating in the A/E/C industry have the opportunity to qualify as a designer for the Section 179D deduction. For more specific information on how your firm can capitalize on this opportunity, click the link below.
Most improvements to commercial property take a long time to recover — as long as 39 years through the standard system of capitalization and depreciation deductions.
But Section 179D allows an owner to earn an accelerated deduction of as much as $1.80 per square foot by significantly improving the energy-efficiency of new construction or retrofits. (In exchange for the immediate deduction, the owner must reduce their basis in the property by the amount of the deduction.)
We work with external companies such as CPA firms, lighting contractors, equipment manufacturers, and other professional services firms that want to market the §179D deduction to their clients as a value-added service. We offer them access to our services, provide our work product to them (marked either with our branding or theirs, depending on their preference), and offer support with marketing and technical information that can help them effectively present the value proposition of Section 179D to their clients.
For more information on which projects qualify for the Section 179D deduction, see the Eligibility Page.