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Benefit illustration application of §179 d of ep-act for an auto dealers... copy

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Benefit illustration application of §179 d of ep-act for an auto dealers... copy

  1. 1. CAPITAL REVIEW GROUP – COMPREHENSIVE ENERGY AND TAX SOLUTIONS Q qsw E Tax Incentives for Energy Efficiency – Application of §179D of EPAct for a Auto Dealership Improving the Pay-back Period for Enhancing Energy Efficiency and Improving SustainabilityBenefit Illustration Solutions & Capital Discovery®An owner of a 287,000 square foot auto dealership four CRG determined that the building systems qualifiedyears ago underwent a complete redesign of their based upon energy efficiency for the §179D taxfacility. The project scope included reconstruction of the deductions, while going back four years for theinterior of the building, significant upgrades, and redesigned facility. The Energy Policy Act of 2005redesign of the exterior facade. The goal was to make (EPAct) includes the §179D tax deduction forthe facilities more contemporary, create a customer investments  in  “energy-efficient commercial buildingfriendly environment, and to integrate energy property”  designed  to  significantly  reduce  the  heating,  efficiencies. To improve efficiencies and enhance cooling, water heating, and interior lighting energycomfort, the redesign included installing an HVAC system cost of new or existing commercial buildings. Thiswith two high-volume, low velocity air circulation energy-efficient commercial building property mustsystems for low energy use and low maintenance; smart be placed into service between January 1, 2006 andsolar  skylights  augmented  by  LED’s  throughout;  wireless   December 31, 2013 and the Revenue Procedure 2011-building automation controls; Low E II glass with very 14 allows a claim on the deduction back to 1/1/2006,high R factor and very low U factor; and batt insulation. and for some tax payers, to claim this deductionThe completed project enhanced the overall customer without amending tax returns. §179D allows for aexperience as well as provided ROI through whole building deduction of $1.80/square foot total ofimplementation of energy efficient systems. $.60/square foot deduction for Lighting, $.60/sq. deduction for HVAC (including water heater) and aChallenges $.60/deduction for the building envelope when ASHRAE Standard 90.1-2001 is exceeded by specific percentages.•Exploration of incentives available four years after theproject was completed. Based on the energy efficiency attained and•Provide information to owners on incentives availableto enhance ROI, after the redesign occurred. application of the Revenue Procedure 2011-14,•Capitalizing on all tax opportunities associated with the auto dealer was allowed to claim the fullenergy efficiencies. deduction amounting to $1.80 per s/f totaling $516,600.00 with no need to amend their tax returns. Address: 1430 East Missouri Ave Suite B-165 Phoenix, AZ 85014 Toll Free: 877.666.5539

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