earth energy Solutions GROUP

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179D Federal Energy Tax Deductions for Green Hotels

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179D Federal Energy Tax Deductions for Green Hotels

What are the requirements?

  • Most reduce total annual energy and power costs with respect to the interior lighting, systems, heating, cooling, ventilation and hot water systems by 50%, but partial deductions are allowed
  • Energy simulation is required to justify the deduction
  • Inspection and testing must be completed by a qualified engineer or contractor registered in the jurisdiction

How much is the deduction?

  • Maximum deduction – $1.80 per ft2 equals 50% reduction in total annual energy and power costs (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
  • Partial deduction – $0.60 per square foot = 16 2/3% reduction for building envelope, HVAC and service hot water systems and lighting
  • Partial deduction (interim lighting) – $0.30 – $0.60 per ft2 = 25 – 40% reduction in lighting power density (50% in case of warehouse)

What qualifies?

  • Current full set of architectural plans that includes all specifications and cut sheets for renovations
  • Energy compliance documents for lighting, HVAC and envelope (Title 24 or IECC), if applicable
  • EnergyPro File – computer file use to generate T-24 documentation (optional)
  • A contact person and phone number

What do I get from a 179D review?

  • FTD certificate package – requires documentation for energy deduction
  • Provide review of existing T-24 or IECC to verify compliance with current code requirements
  • Commercial buildings, such as green hotels, 20,000 sq ft or larger
  • Apartments, four+ stories, for lease
  • Commercial energy renovations
Who qualifies for the deduction?

  • Commercial building owner (hotel owners) or leaseholder paying for the improvements
  • Public buildings – the hotel owner may allocate the deduction to the designer (architect, engineer, contractor, environmental consultant or energy services provider) for the tax year that includes date that property is place in service

What is the time frame for eligibility?

  • Units must be completed or renovated after December 31, 2005 but before December 31, 2013

What is needed from the builder?

  • Review building lighting, HVAC and envelope systems for Federal Tax Deduction qualification
  • Contract for analysis and certification documentation

How do 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 or go back to 2006 using 3115 form

For questions or a benefit proposal, please contact:

Chris Lewis, Director of Energy Solutions
Tel 888.229.0213 Ext. 803 | Fax 888.229.0213 www.ecogreenhotel.com |

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Author: CSea

... embracing what I can change and accepting what I cannot, while totally grateful for everything about my life.

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