Lester Asks:

I would like to know what it takes to become a "qualified individual" able to perform the Green Building Credit Certifications. More specifically, I would like to know if being a LEED AP would qualify me to perform the certifications. From what I've read a "qualified indivudual" is an engineer or contractor licensed in which the building is located. It seems as though the term "engineer" is loosely used and may not mean a PE. Any guidance is appreciated.

A: The tax deduction that is available through IRS Section 179D does not list being a LEED AP among the qualifications necessary to be a "qualified individual" who is able to perform the necessary certification of any energy efficient investments that would comply with the section. IMHO, being a LEED AP is probably too recent a designation for the IRS to consider it, as odd as that may seem. Being a Professional Engineer does seem to be one way to comply under the section. You might be able to request that LEED APs be considered qualified individuals.

Notice 2006-52 under Section 179D states that a "Qualified Individual" is: An individual that (1) Is not related (within the meaning of §45(e)(4)) to the taxpayer claiming the deduction under § 179D; (2) Is an engineer or contractor that is properly licensed as a professional engineer or contractor in the jurisdiction in which the building is located; and 19 (3) Has represented in writing to the taxpayer that he or she has the requisite qualifications to provide the certification required under section 4 of this notice (in the case of an individual providing the certification) or to perform the inspection and testing described in section 4.05 of this notice (in the case of an individual performing the inspection).

I would think that a LEED certified building would be able to qualify for treatment under Section 179D, but perhaps not the other way around. If you come across any additional info, please let us know.

Related Advice:

• Section 179D Analysis: Where Can I Find a Qualified Entity?



• Section 179d: Green Building Tax Deduction Contractors



• Section 179d: What About Exterior Lighting Retrofits?