The modern standard for 179D Deductions
The 179D, Energy Efficiency Deduction, was instituted as part of the Energy Policy Act in 2005. The 179D incentive encourages the design of energy efficient commerical buildings and applies to both new construction and renovations. The energy efficient components are HVAC, interior lighting and building envelope. The deduction offers significant savings to the designers (usually the architects or engineers) of government owned or non-profit buildings. In addition, this also applies for commercial building owners.
SPRX simplifies the process by quickly determining your eligible deductions and providing a comprehensive report with all necessary documentation and certifications.
SPRX simplifies the process by quickly determining your eligible deductions and providing a comprehensive report with all necessary documentation and certifications.
How SPRX saves you
time and money
1. Gather and upload your files to our software
Our uploading portal allows you to effortlessly import data via spreadsheets, PDFs, and various other file formats.
Simply upload your files or integrate with your data provider, and our system takes care of the rest.
Simply upload your files or integrate with your data provider, and our system takes care of the rest.
2. Our AI-powered software processes your documents
Our industry-leading software processes your building plans, energy system specifications, lighting designs, HVAC documentation, and building envelope details. We identify energy-efficient components that qualify for 179D deductions and calculate precise square footage measurements and energy savings percentages.
We generate comprehensive deduction reports within minutes compared to what traditionally takes weeks or months with manual methods.
We generate comprehensive deduction reports within minutes compared to what traditionally takes weeks or months with manual methods.
3. Modeling
We generate comprehensive digital models that precisely represent your building's energy profile. These detailed simulations demonstrate compliance with Department of Energy standards and quantify your exact tax deduction eligibility.
Our models provide clear visualization of energy improvements for stakeholders and documentation purposes.
Our models provide clear visualization of energy improvements for stakeholders and documentation purposes.
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4. Certification
Our qualified experts visit your location to verify that implemented systems match submitted documentation. This critical step ensures full compliance with IRS requirements and maximizes deduction potential.
The certification process includes thorough documentation of all energy-efficient systems with photographic evidence.
The certification process includes thorough documentation of all energy-efficient systems with photographic evidence.
5. Allocation Letter
Our system intelligently identifies the appropriate decision maker for your project's allocation letter. We handle the entire process from generation to signature collection, eliminating communication delays.
All documentation is tracked in our secure system, providing complete transparency throughout the approval workflow.
All documentation is tracked in our secure system, providing complete transparency throughout the approval workflow.
6. Receive an audit-ready report
Receive a comprehensive, IRS-compliant report package that stands up to scrutiny. All documentation is organized according to current tax requirements with clear supporting evidence.
Your final package includes everything needed for confident filing and peace of mind during any potential review.
Your final package includes everything needed for confident filing and peace of mind during any potential review.
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Frequently Asked Questions
What is the 179D Deduction?
The 179D tax deduction is a federal incentive designed to promote energy efficiency in commercial and public buildings. It allows building owners to claim significant deductions for installing qualifying energy-efficient systems including lighting, HVAC, and building envelope components. Originally introduced in the Energy Policy Act of 2005, this incentive has been permanently extended and enhanced through recent legislation.
The deduction can reach up to $5.00 per square foot for qualifying buildings that demonstrate substantial energy cost savings compared to reference standards.
The deduction can reach up to $5.00 per square foot for qualifying buildings that demonstrate substantial energy cost savings compared to reference standards.
Who can claim a 179D Deduction?
Property owners of commercial, industrial, and residential rental properties can claim the benefits of a 179D deduction. This includes individuals, partnerships, corporations, and other entities that own qualifying buildings or have made qualifying energy-efficient improvements. For government-owned buildings, the deduction can be allocated to the primary designer responsible for the energy-efficient systems (architects, engineers, contractors).
Building owners must obtain proper certification from a qualified professional to verify energy savings meet the required thresholds before claiming the deduction.
Building owners must obtain proper certification from a qualified professional to verify energy savings meet the required thresholds before claiming the deduction.
What types of buildings qualify?
Almost any commercial or investment property can qualify for the 179D deduction, including office buildings, retail spaces, warehouses, manufacturing facilities, medical buildings, apartment complexes, hotels, restaurants, and leasehold improvements. Both new construction and existing properties (including recently purchased buildings) can benefit.
The building must be located within the United States and must demonstrate energy efficiency improvements that meet or exceed ASHRAE standards. Government buildings like schools, municipal offices, and military facilities can also qualify, with the deduction allocated to the primary designer.
The building must be located within the United States and must demonstrate energy efficiency improvements that meet or exceed ASHRAE standards. Government buildings like schools, municipal offices, and military facilities can also qualify, with the deduction allocated to the primary designer.
Does SPRX Provide Full 179D services?
Yes, SPRX provides comprehensive 179D services from initial assessment through final certification. We utilize advanced AI technology to analyze building plans, identify eligible components, and prepare detailed reports that maximize your tax benefits. Our process automates significant portions of the analysis while ensuring full compliance with IRS guidelines.
Our certified engineers perform the required site visits and energy modeling to verify savings calculations according to IRS regulations. We deliver audit-ready documentation and support you through any IRS inquiries, providing complete peace of mind throughout the process.
Our certified engineers perform the required site visits and energy modeling to verify savings calculations according to IRS regulations. We deliver audit-ready documentation and support you through any IRS inquiries, providing complete peace of mind throughout the process.
As a tech company, does SPRX have tax experts?
Yes! Our tax team has over 40 years of combined experience with the 179D deduction and commercial building energy incentives. We maintain partnerships with certified tax professionals who specialize exclusively in energy-related tax incentives and stay current on all IRS regulations. Our technical experts include licensed professional engineers and certified energy modelers who understand both the technical requirements and tax implications of energy-efficient building systems.
We combine cutting-edge AI technology with deep tax expertise to maximize your benefits while ensuring full compliance with ever-changing tax regulations.
We combine cutting-edge AI technology with deep tax expertise to maximize your benefits while ensuring full compliance with ever-changing tax regulations.
Ready to claim your
179D Tax Deduction?
Join thousands of companies saving time and money with our revolutionary platform.