Tax season 2014 just ended, but it’s never too early to keep next year’s tax savings in mind. The Senate Finance Committee recently approved a two-year extension of the Energy Efficient Commercial Buildings Tax Deduction, more commonly referred to as Section 179D. This little publicized tax provision can mean potential tax savings for commercial building owners, architects, contractors, or engineers who make energy efficient newly constructed or retrofitted upgrades to their buildings. This incentive could offset the cost of renovations that have been put off because of budget concerns.
The Basics of 179D Explained:
-There are three types of upgrades that may qualify for this provision.
- Interior lighting systems
- HVAC/hot water systems
- Building envelope
-The building system upgrades must reduce overall energy costs by 50 percent in comparison to a building designed to meet the 2001 version of ASHRAE Standard 90.1.
-The maximum deduction is $1.80 per square foot of deductions, but it can be divided by type if necessary energy cost reductions thresholds are not met:
- $0.60 per square foot for interior lighting systems
- $0.60 per square foot for HVAC/hot water systems
- $0.60 per square foot for building envelope
-Most buildings qualify, including:
- Commercial buildings
- Apartment buildings
- Parking garages
Simple Way to Qualify: Windows
If you’re not in the market for expensive lighting and HVAC/hot water system upgrades, updating your windows is one of the most cost effective ways to qualify under the “building envelope” provision of Section 179D. Thermolite’s curtain wall retrofit interior window systems increase energy savings by sealing window seams that allow the air infiltration which causes additional need for temperature control, making your HVAC systems work harder.
Plus, our RetroWAL™ interior curtain wall window retrofit system is quicker than traditional window replacement options. It is the world’s first DIY installation system, so it can be installed at your convenience within just a few hours – without the need to close the building for multiple days during working hours.
Learn more about how installing an interior curtain wall windows retrofit system could increase your energy savings in order to qualify for the 179D tax break. Contact Thermolite today at (574) 234-4004 for more information.
Disclaimer: The information contained on this website does not constitute legal advice or tax advice. Please consult with a professional tax advisor.
The Thermolite engineering staff is an innovative structural, energy modelling, and implementation team that works to create unique window systems alternatives to traditional replacement windows. Our systems protect against blasts, hurricanes, and sound, while being energy efficient and quick and easy to install. We serve a wide range of industry buildings including government, military, historical, schools and universities, financial, health care, hospitality, and offices. Contact us today to learn how we could update your building’s window systems.