Our mission is to make it easy for you to design, build and own energy
efficient commercial buildings. We’re not content to just make the best
engineered commercial grade ICF. The truth is we always have an eye out for new
ways to make this business easier for all of us. Today, we want to show you how
you can keep real dollars in your pocket by reducing your tax bill.
This strategy works for both commercial building owners and
designers. The Energy Policy Act of 2005 – called EPAct for short, allows a
Federal Income Tax Deduction for energy efficient buildings. Today, you can claim
up to $180,000 per 100,000 square feet of floor space.
You can
qualify in any or all of three separate categories: HVAC, Lighting and Building Envelope. The way you qualify is by designing and constructing
the building or improvements so that those components are more energy efficient
than a 2001 benchmark building. Here’s the breakdown:
- Building Envelope: Save 60¢ per square foot for a 10% reduction.
- HVAC: Save 60¢ per square foot for a 15% reduction.
- Lighting: Save 60¢ per square foot for a 25% reduction
- Partial credit: 30-60¢ for a 25-40% reduction in lighting power density
Any commercial building can qualify. Apartments for lease that are
four or more stories can also qualify, and commercial renovations can benefit
as well. For now, the work must have been completed between December 31, 2005
and January 1, 2014. The best part is that it is not necessary to amend prior year tax
returns in order to take the deduction.
PolycreteUSA has teamed up with an industry leader in 179d Tax Deduction certifications, Walker Reid Strategies to make this happen for you. WRS is a licensed engineering firm and
has all the required Professional Engineers,
LEED Accredited Professionals and
Commercial Energy Raters on
staff. Walker Reid Strategies provides the required IRS certificate
documentation for deductions including:
- Energy Model performed with a Dept. of Energy Certified program
- Inspection Compliance Form
- Certified Letter Verifying the Qualified Deductions
You can receive this benefit if you’re the building owner or
tenant at the time of the construction or improvements. The deduction is also
available for Public Buildings. Owners of public buildings may allocate the
deduction to the architect, engineer, contractor or energy consultant. This
applies to schools, state and local government buildings and even federal government
and military structures.
When I tell
people this works with public buildings, their first reaction is often, “Yeah,
right.” But it really does work. Walker Reid helped a New Jersey based
lighting service company receive a $2.6 Million tax deduction by providing
turn-key lighting projects in five school districts in NJ, PA and NY. The
combined 4.34 million square foot projects were certified by WRS and allocated to
the contractor/designer as required by the IRS §179D Guidelines.
Polycrete® buildings are always highly energy efficient. In many
cases, choosing Polycrete® alone will enable you to achieve the 10% energy
reduction required to earn the Building Envelope deduction. Your choice of windows
and roof systems are also going to make a critical impact. On a 50,000 square
foot building the tax deduction achieved from choosing Polycrete® can amount to
$30,000. That’s real money.
Your building must be at least 9,000 square feet in order to make this
economically feasible. During the engineering process, if WRS determines that
your building will not qualify, they’re not going to charge you anything, and
their minimum fee is very reasonable. The entire process rarely takes more than eight
weeks and is frequently much shorter.
In order to get this ball rolling, or to get some more information
on the section 179d deduction, please call or email me. If you’d prefer, you
can contact David Diaz directly at Walker Reid Strategies.
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