As of 2019, over 200,000 property owners have made
$5 BILLION
in energy efficiency and other improvements to their
properties through PACE financing.
IMPROVE YOUR CARBON FOOTPRINT WHILE SAVING
What is the Property Assessed Clean Energy Program (PACE)?
States across the country have passed legislation allowing local governments to offer PACE financing for energy-efficient projects on their property or business. Participation in the PACE Program is voluntary and allows property owners to repay their improvement costs over a set time period – typically 10 to 20 years – through property assessments.
How It Works
Qualified PACE service providers work together with building owners to select cost-effective projects for renewable energy.
PACE allows property owners to finance upfront costs of energy or other reliable improvements on a property and then pay the costs back over time through a voluntary assessment. Through PACE, the assessment is attached to the property rather than that individual.
Property owners are allowed to implement improvements without a large, up-front cash payment.
BENEFITS OF PACE FOR YOUR PROPERTIES:
- Covers 100% of an upgrade project
- Allows long term financing terms that result in savings
- Lowers eclectic and gas bills
- Improved quality of indoor air and weather resilience
- Lowers your carbon footprint
- Preserves working capital and can improve property NOI
- Increases building value
- Offers a range of accounting treatments
Select your state to learn about your state's PACE Program.
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.
Schedule a free consultation with our team
of experts to learn more!
Here Are Some of Our Clients' Success Stories:
Commercial Building Owners
Total Deduction:
$7 MM
Project Types Include:
- Retail Spaces
- Car Dealerships
- Logistics Centers
- Data Centers
Download the one pager
Architects & Designers
Total Deduction:
$11.2 MM
Project Types Include:
Download the one pager
Total Deduction:
$11.2 MM
Project Types Include:
- List Item #1
- List Item #2
- List Item #3
Eligible contractors / builders are defined by the IRS as
- Individuals
- A trust
- An estate
- A partnership
- An association
- A company
- A corporation
In order to receive the benefits, builders and contractors must apply and document their installments before the construction crew breaks ground.
Qualifying project characteristics
- Projects must be built on the territory of the United States
- For the minimum deduction, projects must meet the Energy Star certification requirements
- For the maximum deduction for multifamily homes, projects must meet the Zero Energy Ready Home (ZERH) requirements and meet their state’s prevailing wage requirements
- For the maximum deduction for single-family homes, projects must meet the Zero Energy Ready Home (ZERH) requirements
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Why choose National Tax Group’s Cost Segregation Services?
With the combined expertise of engineers, construction specialists, and accounting professionals, we can handle complex and time-sensitive cost segregation studies. Our main objective is to facilitate maximum tax savings and improve cash flow.
TESTIMONIALS
What Our Clients Are Saying
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
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
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
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
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.