New York – The American Institute of Architects announced it has established a resource page that shows how the design and construction industry can use an innovative provision in the tax code to help win business and save energy in the process.
The page, which was built by Houston-based alliantgroup, takes viewers through the vagaries of Section 179D of the tax code, which was created by the Energy Policy Act of 2005 to address and improve the substantial portion of U.S. energy consumption attributable to commercial buildings. You can learn more here: http://www.aia.org/advocacy/federal/179D/index.htm.
“AIA’s goal in partnering with alliantgroup is to ensure that all AIA member firms are made aware of the powerful 179D incentive – a deduction which can provide powerful cash infusing funds to help firms hire additional employees, competitively price jobs, and expand their practice,” says AIA President Mickey Jacob, FAIA.
“We look forward to working with the AIA to assist their members in expanding their practices and realizing significant cost savings by taking advantage of the 179D deduction,” says Dhaval Jadav, alliantgroup CEO. “Along with the R&D tax credit, the 179D deduction is one of the strongest, but most underutilized tax incentives for industry professionals. I am excited about the opportunity to serve the AIA membership and provide value to its members.”
Many architects, engineers, and design-build contractors are overlooking the 179D deduction because they may not know it exists or that they could potentially qualify. In many cases, they might be claiming small amounts and not everything they are eligible for. This provision of the tax code allows up to a $1.80 / square foot deduction for qualifying properties. Unless it is renewed, it is scheduled to expire this year.
“The 179D Tax Deduction is a valuable opportunity for architectural, construction, design, and engineering firms to contribute to the nation’s energy efficiency goals while increasing a company’s bottom line,” says Dean Zerbe, alliantgroup’s national managing director, and former senior counsel and tax counsel to the U.S. Senate Committee on Finance. “Firms that have worked on any government owned or public property in the past few years should consider a 179D analysis. Through our partnership with the AIA, we can assist in furthering the education of its members across the country about the benefits of utilizing the 179D deduction along with other tax credits and incentives.”