Data Centers 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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Data Centers
Business: A large technology company with a data center in a major metropolitan area.
Location: The data center is located in a hot and humid climate.
Energy-efficient upgrades: 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 data center installed a number of energy-efficient upgrades, including:
- LED lighting
- High-efficiency HVAC systems
- A cooling tower
- An energy management system
179D deduction: The data center was able to claim a $10 million 179D deduction for the energy-efficient upgrades.
Benefits: The 179D deduction saved the data center $10 million in taxes. The data center also expects to save $500,000 per year on energy costs.
The 179D tax deduction can be a significant financial benefit for businesses that invest in energy-efficient upgrades for data centers. In this case study, the technology company was able to save $10 million in taxes and $500,000 per year on energy costs. This is a great example of how the 179D deduction can help businesses reduce their environmental impact and save money.
Here are some other benefits of the 179D tax deduction for data centers:
- Reduce operating costs: Energy-efficient upgrades can help data centers reduce their operating costs by lowering energy bills.
- Improve efficiency: Energy-efficient upgrades can help data centers improve their efficiency by reducing the amount of energy they use.
- Increase uptime: Energy-efficient upgrades can help data centers increase their uptime by reducing the risk of outages.
- Attract and retain customers: Customers are increasingly looking for businesses that are committed to sustainability. By investing in energy-efficient upgrades, data center companies can attract and retain customers who are looking for environmentally friendly businesses to do business with.
If you own or operate a data center, you should consider investing in energy-efficient upgrades. You should talk to our team. The 179D tax deduction can help you save money on taxes and energy costs, reduce operating costs, improve efficiency, increase uptime, and attract and retain customers.
Here are some specific examples of energy-efficient upgrades that can be made to data centers:
- LED lighting: LED lights use up to 80% less energy than traditional incandescent lights.
- High-efficiency HVAC systems: High-efficiency HVAC systems can save up to 30% on energy costs.
- Cooling towers: Cooling towers can help to reduce the energy consumption of HVAC systems by cooling the air before it enters the system. Cooling towers can help to reduce the energy consumption of HVAC systems by cooling the air before it enters the system.
- Energy management systems: Energy management systems can help to optimize the energy usage of a data center by monitoring and controlling energy consumption.
- Heat recovery systems: Heat recovery systems can capture and reuse the heat generated by IT equipment, reducing the need for external cooling.
- Free cooling: Free cooling systems use the ambient air to cool the data center, reducing the need for mechanical cooling.
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.
These are just a few examples of the many energy-efficient upgrades that can be made to data centers. By investing in these upgrades, data center owners and operators can save money on taxes and energy costs, reduce operating costs, improve efficiency, increase uptime, and attract and retain customers.
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.