PolycreteUSA Can Help Cut Your Tax Bill
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.