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Exceeding ASHRAE 90.1: Challenges to Deductions for Subsystems in 179d?

 

Paula asks:My understanding is that 35 states have minimum building standards that exceed ASHRAE 2001, 90.1, the baseline for determining eligibility for the 179D tax deduction. With this in mind, is there a rule of thumb or guidelines that offer statistics about how difficult and/or likely it is for a building to achieve the additional energy efficiency ratings required to qualify for the three subsystem deductions? Also ,what is a source of summarized state specific standards?

Thank you in advance for your guidance.

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Expert Advice and Comments

179D is not something easily

Mon, 05/18/2009 - 21:19 — Matt (not verified)

179D is not something easily defined in way that cost segregation or other tax benefits are to where you could say, "If you do this, it yields this result." Because 179D is based in energy modeling it depends on the climate as much as anything else. For example, a reflective roof in Florida or Arizona is more efficient than one in Pennsylvania where the most advantageous roof is gray. LEED EA Credit 1 is a fairly good indicator but is flawed because you are comparing the 2004 standard to the 2001.

The lighting under the interim rules is easily defined because it is not a modeling issue--it is a lighting power density calculation which is that same in all geographies. If you install efficient lighting and put in the proper controls, it is the easiest to get.

Section 179 deduction easy to understand

Sun, 01/29/2012 - 03:25 — racksjackson

Section 179 deduction is not tough if you are knowing well .Using the Section 179 deduction, A taxpayer may claim on business equipment, machinery used in the business, office furniture and computer software which is added in 2007. If the taxpayer used above mentioned equipment in rental real estate then they will not qualify for the Section
179D. A taxpayer can claim the asset If:

50% business use – get benefit of Section 179 deduction
<50% and >100 % - get benefit of the Section 179 deduction on the % of the cost of the asset that is used for business.

cost segregation

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