Q: Is there no 179D model Quality Control process then? Who checks that the baseline is simulated per 90.1 Appendix G?
The 179D Energy Efficient Commercial Real Estate tax deduction is a IRS Federal Government program and is different than a program like LEED certification.....
Q: We do a significant amount of work on government military bases? Do any types of these buildings qualify for EPACT or 179D? For example, office buildings, hangars for planes, dormitories, etc.
Government buildings including buildings owned and operated by the Department of Defense are ideal candidates for this program for a few reasons:
Q: When I reviewed the government website recently, it showed that there are no qualified energy modeling software as of January 1, 2016. Can you please speak to this?
The person is referring to the Department of Energy’s Office of Energy Efficiency and Renewable Energy’s guidance on qualifying software which says that “Currently, no software is qualified to model systems and buildings placed in service on or after January 1, 2016.” In general, if updated guidance is not available, professionals administering tax programs proceed with the current or most recent guidance.
Q: Would a fit out occurring pre-2016 use ASHRAE 90.1-2001?
Q: Is Trane Trace one of the IRS approved software?
Yes, Trane Trace is one of the IRS approved software. Please reference the Department of Energy-Energy Efficiency and Renewable Energy’s website listing the approved software as well as IRS Notice 2006-52 Section 6 for more information.
Q: What is the basis for the % reduction to qualify for the program? is it a cost basis (like LEED), or EUI?
The guideline for qualification is a percentage reduction in cost of the proposed building compared to the baseline building.
Q: Is there any indication that Congress will renew 179D into 2017 and beyond?
The tax deduction is an economic stimulus program that protects the environment. Therefore, both parties support the deduction and since it’s good for business, it will likely continue to get updated. Unfortunately, tax updates typically happen very late, often in the spring of the year following the year in question and they are retroactively extended, which makes it hard to plan expenditures.
It would be nice if it would be extended sooner and for longer because if a client knew that they were going to get a deduction, the client might spend a little more money on expenditures of energy efficient equipment.
Q: If my company runs the 179D model and submits the work, can my company collect the money. Would we need a third party?
To complete the study, you will need a third party verifier, someone who signs off on the energy savings who is independent, that is not employed by or somehow associated the beneficiary of the deduction
Q: Would a fit out occurring pre-2016 use ASHRAE 90.1-2001?
Yes, the initial IRS Notice 2006-52 established the baseline building to be created using ASHRAE 90.1-2001. Congress recently updated the baseline with the PATH Act issued in late 2015 to be ASHRAE 90.1-2007.
Q: Is Trane Trace one of the IRS approved software?
Yes, Trane Trace is one of the IRS approved software. Please reference the Department of Energy-Energy Efficiency and Renewable Energy’s website listing the approved software as well as IRS Notice 2006-52 Section 6 for more information.
Q: what is the basis for the % reduction to qualify for the program? is it a cost basis (like LEED), or EUI?