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Office Buildings Case study

Office Buildings

Company: A mid sized software solutions company

Location: San Francisco, CA

Building: 62505 square foot office building


179D deduction:

The total cost of the energy-efficient improvements was $1 million. The 179D deduction allowed the company to deduct $180,000 from their federal taxes, which saved them $63,000 in taxes.


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.

Office buildings Case study Table

Components Electricity Gas Energy costs
Interior lighting 653.3 31756
Space heating 2692.5 47146
Space Cooling 614 29843
Pumps 18.2 885
Ventilation fans 279 13559

The 179D deduction was available for both new construction and renovations.

Energy-efficient improvements:

  • New LED lighting throughout the building
  • Upgraded HVAC system with variable speed drives
  • New insulation in the roof and walls
  • New windows with low-emissivity coatings

The 179D deduction is a valuable tax incentive for businesses that invest in energy-efficient improvements. The deduction can save businesses a significant amount of money on their federal taxes, and it can also help to reduce their energy consumption and environmental impact.

Other benefits of energy-efficient improvements:

  • Increased comfort and productivity for employees
  • Reduced operating costs
  • Increased property value
  • Improved 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 office spaces and buildings more sustainable and save money on energy costs.