Storage Facilities Case study
Go green, save green
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.
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Storage Facilities
Problem:
The storage facility was struggling to keep up with its energy costs. The facility’s HVAC system is old and inefficient, and the facility’s lighting is outdated. The facility is also located at multiple locations across US, which means that the HVAC system is running all year round for a select few locations.
Solution:
NTG’s team began by conducting the required energy simulation to verify the deduction. They then communicated with building owners to explain the deduction and obtain all required documentation. They also worked with qualified engineers and contractors to complete inspections and testing. Finally, NTG provided tax consulting to verify the deductions and oversee the tax filing process.
The storage facility could make energy-efficient improvements to its HVAC system and lighting. These improvements would allow the facility to save money on its energy costs. The facility could also take advantage of the Section 179D tax deduction, which allows businesses to deduct the cost of energy-efficient improvements from their taxable income.
Benefits:
The energy-efficient improvements would allow the facility to save money on its energy costs. The facility could also use the Section 179D tax deduction to offset the cost of the improvements. The improvements would also make the facility more environmentally friendly.
Storage facility Case study Table
| Total | Lighting | Square Footage | Accelerated Tax Benefit |
| TX | $0.60 | 2,13,249 | $127949.4 |
| AZ | $0.60 | 1,24,969 | $74981.4 |
| CA | $0.60 | 49732 | $29839.2 |
| FL | $0.60 | 37,379 | $22427.4 |
| Total | $255197.4 | ||
Implementation:
The first step in implementing the energy-efficient improvements would be to hire an engineer to assess the facility’s current energy usage. The engineer would then recommend the best course of action for improving the facility’s energy efficiency.
Once the improvements have been made, the facility would need to track its energy usage to see how much money it has saved. The facility would also need to keep records of the improvements so that it can claim the Section 179D tax deduction.
Evaluation:
The success of the energy-efficient improvements would be evaluated by tracking the facility’s energy usage. The facility would also need to track its savings to see how much money it has saved.
Conclusion:
Making energy-efficient improvements to a hotel can be a cost-effective way to reduce energy costs and improve the hotel’s environmental impact. The Section 179D tax deduction can also help to offset the cost of the improvements.
Here are some specific examples of energy-efficient improvements that a storage facility could make:
- Install a new HVAC system that is more efficient.
- Upgrade the facility’s lighting to LED lights.
- Install a solar water heater.
- Add insulation to the facility’s walls and roof.
These are just a few examples of the many energy-efficient improvements that a storage facility could make. By making these improvements, the facility can save money on its energy costs and improve its environmental impact.
In addition to the energy-efficient improvements listed above, a storage facility could also take advantage of the Section 179D tax deduction for other energy-efficient improvements, such as:
- Programmable thermostats
- Energy-efficient windows
- Roof insulation
- Building automation systems
By making these additional improvements, a storage facility could further reduce its energy costs and improve its environmental impact.
NTG’s success in this area is due to their understanding of complex construction and design projects. The team performs a high degree of due diligence and works with a variety of government authorities to expedite the approval process. This ensures that their clients receive the maximum possible benefit from the 179D program.
If you are a fire department considering energy efficiency improvements, you should talk to our team about the 179D tax deduction. The deduction can help you to make your storage facility more sustainable and save money on energy costs.
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
Commercial Building Owners
Architects & Designers
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
80,000 X $1.80 =
$144,000
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
Commercial Building Owners
Architects & Designers
GO GREEN, SAVE GREEN
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.