Hotels 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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Hotels
Problem:
A luxury hotel in Texas was struggling to keep up with its energy costs. The hotel’s HVAC system is old and inefficient, and the hotel’s lighting is outdated. The hotel is also located in a hot climate, which means that the HVAC system is running all year round.
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 hotel could make energy-efficient improvements to its HVAC system and lighting. These improvements allowed the hotel to save money on its energy costs. The hotel could also take advantage of the Section 179D tax deduction, which allowed businesses to deduct the cost of energy-efficient improvements from their taxable income.
- Installing new windows and insulation
- Replacing the heating and cooling systems
- Installing LED lighting
Benefits:
The energy-efficient improvements allowed the hotel to save money on its energy costs – estimated savings of over $300,000 on energy costs as a result of these improvements.
Hotels Case study Table
| Location | Square Feet | Accelerated Tax |
| Texas | 997920.4161 | 1313200 |
The hotel could also use the Section 179D tax deduction to offset the cost of the improvements. The improvements would also make the hotel more environmentally friendly.
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 hotel could make:
- Install a new HVAC system that is more efficient.
- Upgrade the hotel’s lighting to LED lights.
- Install a solar water heater.
- Add insulation to the hotel’s walls and roof.
These are just a few examples of the many energy-efficient improvements that a hotel could make. By making these improvements, the hotel can save money on 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 fire station 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.