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 The hotel’s HVAC system is old and inefficient, and the hotel’s lighting is outdated.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.