Schultz Energy Consulting can help you determine if your building is eligible for the 179D Federal Tax Deduction. Our experienced team of professionals can certify your building and provide all the documentation required by the IRS to claim the deduction.

1. John J. Schultz
Energy Consultant
RESNET/HERS Certified Rater
Stevens Point, Wisconsin

2. Energy Policy Act of 2005
IRC Section 179D
Commercial Buildings

3. 179D provides for a
Tax Deduction of
up to $1.80
per Square Foot

4. Not to Confuse
Allows businesses to deduct the cost (limits apply) of
certain types of property on their income taxes as an
expense, rather than requiring the cost of the property
to be capitalized and depreciated. If a business is
unprofitable, and has no taxable income to use the
deduction, that business can elect to use 50% Bonus
Depreciation and carry-forward to a year when the
business is profitable.
Section 179 Deduction

5. 179D Buildings
“placed in service”
1/1/2006 to 12/31/2016

6. 179D Buildings
Non-Profits are ineligible
(not paying federal income tax)

7. 179D Buildings
Governmental & Public
Units are eligible
(tax benefit accrues to design-
builder and/or designer)

8. 179D Tax Deduction
reduces your
taxable income

9. 179D Tax Deduction
of $1.80/SF can be
1, 2 or 3 components

10. 179D Tax Deduction
can be $.60/SF each for
-HVAC & Hot Water
-Interior Lighting
-Building Envelope

11. 179D Tax Deduction
Certification Requirements
1. Third-Party Engineer or Contractor
2. Energy Modeling Software
3. May Require an Inspection
4. Reports Prepared to IRS Guidelines

12. 179D Tax Deduction
Energy Reduction Baselines
2005-2015 Buildings:
ASHRAE 90.1 – 2001
2016 Buildings:
ASHRAE 90.1 – 2007

13. 179D Tax Deduction
How to take the Deduction
3-Year amended return or
Form 3115
20-Year carry forward

14. 179D Tax Deduction
Nothing is submitted with
your tax return
Keep the certification and
calcs on-file, if audited

15. 179D Tax Deduction
What We Need
Building Plans
HVAC & Lighting Schedules
Building’s Primary Usage

16. 179D Tax Deduction
Things to Know
1. Complimentary Analysis
2. Written Fee Proposal
3. Reduces your Basis
4. No fee if no deduction

17. Q&A
Thanks for
your time!