Section 179 D Energy Tax Incentive

ENERGY POLICY ACT OF 2005 – (EPAct). Extended through 2013


You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings.

The Energy Policy Act of 2005: includes a tax benefit for investments in energy-efficient commercial building improvements including:

• Heating Ventilation and Air Conditioning (HVAC) components
• Interior Lighting
• Building Envelope


To be eligible, the energy efficient commercial building improvements must be placed in service between January 1, 2006 and December 31, 2013. Under Section 179 D of the Internal Revenue Code for the proposed or newly installed: lighting upgrades, HVAC and building envelope, We can perform the certification process and will conduct this process in accordance with section 1331 of the Energy Policy Act of 2005.

Who can benefit from the energy tax deduction?
• The person or organization that pays for construction is generally the recipient of the deduction. This is usually the building owner, but for some HVAC or lighting efficiency projects, it could be the tenant.
• Building or renovation must have been put into service after December 31st, 2005 and before January 1, 2014.

Section 1331 of the Energy Policy Act of 2005 provides for and allows a deduction for energy efficient commercial building improvements that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) standard. A maximum deduction of $1.80 can be obtained if a reduction in energy consumption reaches 50%. Additionally, a partial deduction of $0.60 per square foot for building sub systems can be obtained.

SUB-SYSTEMS: Lighting, HVAC, Hot water and Building Envelope.

PARTIAL DEDUCTION: Owners of new and existing buildings (placed in service prior to the date of enactment) may earn a partial deduction of $0.60 per square foot per “system” for upgrading one or two major building Sub Systems.

INTERIM RULES – Lighting: Deduction of $.30 per square foot for buildings “or portion of buildings” that achieve at least 25% lighting savings relative to the ASHRAE 90.1-2001 lighting power density (Watts per sq ft) requirements and that also uses bi level switching. This deduction increases progressively to $0.60 per square foot for using bi-level switching and achieving 40% lighting savings.

Scope of Services

We will conduct a physical inspection and perform our Energy Tax Service to calculate and certify the allowable deductions for part or all of the cost of energy efficient lighting, HVAC and building envelop or any of these Sub-Systems that have been placed in service after December 31, 2005 and Before January 1, 2014.

Improvements and better pricing for environmentally sustainable materials have many building owners, architects, and facility managers considering significant updates to save cash.

We use a TOTAL approach in energy conservation, reduction and sustainability.

We brings over 75 years of energy reduction experience, state-of-the-art diagnostic technologies and building performance measurement and verification (energy modeling) software programs to accurately effects on overall energy consumption but also on building comfort and indoor air quality as well


Energy Engineering has come to the forefront of all construction and retrofit projects. Energy engineering “bridges the gap” between what the client wants (return on investment, low operating costs and verifiable energy savings), what the engineer/architect designs, and what the contractor installs


Our team of Energy Specialist will perform a TOTAL EXAMINATION of all major energy consumption areas.

The emphasis on Energy Examination will be focused on improving efficiency and sustainability as well as reducing utility cost. We utilize the latest technology and best practices. Our energy engineering approach is integral to everything we do.

It includes the review of:

• Lighting Upgrades / Retrofits
• HVAC System Optimization
• Water Usage Review
• Energy Recycling Opportunities
• Equipment Energy Analysis
• Renenwable Energy Options: WIND, SOLAR & GEOTHERMAL
• Carbon Tax Credits
• EPAcT / Section 179 D (Receive .60 – $1.80 per square foot)
• Renewable Energy Tax Credits
• Local, State and Federal Energy Improvement Incentives
• TOTAL Management and Design
• Project Funding Options to reduce out of pocket cost • Complete ROI Analysis

GREEN ROI PROGRAM: Learn how to go green w/o it costing you any green!

Energy and Green Building Services