Our 179D Process
We have designed our process to give our clients confidence in their 179D tax deduction. The requirements needed to qualify your building for a 179D tax deduction are confusing enough. Our process brings clarity and peace of mind.
Feasibility
The first part of our process is a complimentary feasibility study. At no charge, we will evaluate all of your buildings that contain an energy efficient system to determine their potential of qualifying for a 179D tax deduction.
In order to complete the feasibility study, Blue Energy Group requires some data on the building and the energy efficient system such as the lighting and mechanical plans and schedules. Our feasibility studies are usually completed within 48 hours of receiving that information.
Certification
An accurate and favorable feasibility study gives our clients confidence and assurance to move forward with the certification process. Once a contract is signed with Blue Energy Group and the pertinent building information is delivered to us, we begin the energy study of the building. The energy study generally involves creating an energy model of the building to determine the reduction of the energy and power costs as compared to the ASHRAE 90.1-2007 baseline building. Once the savings are known, a site visit to the building will be completed to verify the information that was used to create the energy model. Upon completion of the site visit, the building will be certified according to the IRS guidelines.
Deliverables
Once we have completed our study, you will receive a final report and the tax forms necessary to file your tax deduction. Our final report will contain all of the information needed in the event you are audited to satisfy the IRS and protect your money. We have never lost an audit because our analysis is sound and our reports are thorough. We guarantee it.
Next Step
The Blue Energy Group certification process carefully follows all IRS and NREL guidelines so that our clients can be sure that they are receiving an accurate building certification. If you would like more information or would like to take advantage of our complimentary feasibility study, please contact us today.
FAQ
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Yes. The reference building models for determining the energy and power cost savings for new construction and retrofits of existing buildings are based on Standard 90.1. The historical performance of existing buildings is not used for the energy savings calculations for tax deduction purposes.
A private building owner can take a 179D deduction on any project completed after 2005. However, a designer may only take a tax deduction for a municipal building project that was completed within three years of the filing of their latest federal tax return.
Yes. Section 179D can be used for any energy retrofit of an existing building or the construction of a new building or building addition.
The tax deduction is the lower of (1) the value of the asset or (2) the value of the allowable tax deduction. The deduction cannot be for more than the amount that was spent on the equipment and associated installation labor.
Yes. If two or more taxpayers participate in the tax deduction activities then they can share in the deduction. However, the aggregate amount of the 179D deductions allowed cannot exceed the allowable amount for the specific tax deduction.
No, this tax deduction is applicable only to building owners who pay taxes. The exception is for government-owned buildings where the tax deduction may be assigned to the designer.
Yes. Beginning with projects placed into service in 2023, nonprofit building owners can allocate their deduction to a designer of the project. Likewise, government-owned building owners may also allocate their tax deduction to the designer.
No credit can be claimed for renewable electricity, and renewably generated electricity should not be included in calculations or simulations.
No, the same specifications apply to buildings in all locations.
Standard 90.1 does not cover buildings that are mostly refrigeration, so the cold storage building would fall outside the scope of 179D tax deductions.