EPACT

Make Your Energy Efficiency Investment Even More Rewarding

The Energy Policy Act of 2005 (EPact) included Section 179D, which provides special tax incentives for qualified energy efficiency projects. The Inflation Reduction Act of 2022 increased the size of maximum tax credits under Section 179D to between $2.50 and $5.00 per square foot of affected spaces— and they now adjust up annually for inflation.

Section 179D also allows you to look back to 2006 and incorporate any qualifying energy efficiency improvements into your tax credit calculations!

While hundreds of millions of dollars in tax credits have been claimed by businesses, contractors, architects and engineers from the 179D Incentive Program, very few who are entitled have participated

Why?
→ Low Awareness
→ Complexity
→ Inertia

To benefit from section 179D, the IRS requires that your project must be certified by a qualified expert. The experts must be multidisciplinary because the requirements are very complex.

Kilfinane Energy Consultants works directly with the preeminent legal, engineering and accounting firm in this field to ensure that our clients derive the maximum benefits from their energy efficiency upgrade.

Multiple Benefits Of Energy Efficiency

- Reduced Emissions
- Reduced Operation & Maintenance Costs
- Increase Production & Improved Product Quality
- Improved Employee Health & Safety
- Waste Reduction

The Magnitude of EPAct 179D

Since the Inflation Reduction Act of 2022, deductions have been increased, and can range from $2.50/sq ft to $5.00/sq ft. (adjusted up for inflation!)

Sample Project Size

50,000 Sq. Ft.

100,000 Sq. Ft.

250,000 Sq. Ft.

500,000 Sq. Ft.

1,000,000 Sq. Ft.
25% Over Standard

$125,000

$250,000

$625,000

$1,250,000

$2,500,000
50% Over Standard

$250,000

$500,000

$1,250,000

$2,500,000

$5,000,000

Free Tax Benefit Assessments

Our partners will review your project on a Complimentary Basis. Projects between 1/1/06 - Present are eligible. For new construction, we typically look for the Architectural, Mechanical, Electrical and Plumbing drawing sets in pdf.

For retrofits we look for information on the project, like project cost, spec sheets, energy saving estimates as well as the project address and any drawings (New or Pre-Existing). Upon completion of our complimentary review, we will estimate your project's tax deduction as well as provide you with a fixed fee quote for your project. We look forward to reviewing your project.

* There are two deduction levels, with the higher level approximately 5x higher than the lower level. To get the higher level ($2.50-5.00 with inflation adjustments), the project needs to either meet prevailing wage and/or apprenticeship requirements. Otherwise, the lower level is $0.50-1.00, adjusted for inflation.