alliantgroup Spreads the Word on How Engineering Firms Are Claiming Hundreds of Thousands of Dollars

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alliantgroup explained at the ACEC National convention this month, how engineering firms of all types – civil, structural, mechanical, electrical, and environmental – are capitalizing on valuable and easily obtainable tax incentives for the engineering industry. alliantgroup knows from first-hand experience working with thousands of engineering firms, that available incentives – such as the R&D tax credit and the 179D deduction for energy efficient commercial buildings – are largely underused.

alliantgroup had many industry experts at the convention educating engineering firm owners and principals on the benefits of tax incentives. Dean Zerbe, former Senior Tax Counsel to the U.S. Senate Finance Committee, was one of alliantgroup’s knowledge leaders who attended the event to speak with members as well as ACEC directors and lobbyists.  Dean was instrumental in writing the legislation for 179D and fully understands all aspects of the R&D credit. Dean stands behind and supports engineering firms on the Hill and he regularly speaks to industry organizations to help spread the word about tax benefits and legislative issues that affect the industry. He also is a major contributor to the engineering community and presents various alliantgroup online webinars to help educate firms and their CPAs on available tax credits and incentives.

alliantgroup was also pleased to have special guest, Dawn Levy O’Donnell attend the ACEC event on our behalf. Dawn is also a former Tax Counsel to the Senate Finance Committee and is considered the energy maven on Capitol Hill. She had the opportunity to speak to engineering firm owners and ACEC leadership about the challenges and opportunities available.

For more information on the R&D tax credit, the 179D deduction or information on future alliantgroup events and webinars, visit alliantgroup.com

Alliant Group: Federal Energy Tax Incentives Available Now

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In 2005, the federal government passed the Energy Policy Act to encourage companies to embrace energy-efficient solutions. Alliant Group reminds clients that tax incentives are offered in major categories that reduce the use of petroleum fuels while increasing the use of green energy sources. For example, lighting, HVAC, and hot water systems can be produced in ways that consume less energy in buildings. Alliant Group works with companies that participate in activities that often qualify for tax incentives, including:
• Biodiesel credits for:
o Biodiesel blenders and manufacturers
o Agri-biodiesel blenders and manufacturers
o Renewable biodiesel blenders and manufacturers
o Low-sulfur formulas from diesel producers
• Alcohol credits for:
o Methanol
o Ethanol
o Propane
o Alcohol fuel mixtures
o Kerosene
o Liquid hydrogen
o Compressed natural gas
o Liquefied petroleum gas
o Liquefied natural gas
o Qualified alternative fueling station

Alliant Group encourages clients to seek out alternative sources of energy that might qualify for tax credits, such as:
o Active or passive solar technologies
o Microturbine systems
o Wind-generated electricity
o Fuel cell systems
o Geothermal generated electricity
o Waste-generated electricity
o Hydropower-generated electricity

Alliant Group works closely with clients to define the tax credits that can be acquired for energy efficient designs used for:
o Commercial building
o Home construction
o Energy-star appliance manufacturing
o Clothes washers
o Dishwashers
o Refrigerators

Alliant Group encourages every client to start each project with a tax incentive assessment prior to defining the project tasks. Labor and equipment costs can qualify for valuable energy-related tax credits. Specialists with Alliant Group will assist in the efforts to maximize the percentage of tasks that will qualify for tax incentives, which reduces the overall cost of the project. All Alliant Group clients recognize the value of restructuring major projects to qualify for every possible energy-related tax incentive.

For building construction, many different organizations will qualify for energy-related tax incentives. Not only can owners and lessees who incorporate energy efficient design capitalize on valuable deductions, “designers” of government buildings can benefit from these tax incentives as well. Early consultation with Alliant Group is essential for optimizing the various types of tax credits. While Alliant Group specialists are able to examine existing projects for tax credits, the easier approach is for the client to contact Alliant Group as the project is being defined. Qualifying for tax credits is important because of the substantial savings that can be realized by energy savings. Alliant Group works with clients in numerous industries to assist with the acquisition of every possible energy-related tax credit.

alliantgroup: Tax Credits For the Oil & Gas Industry

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Great solutions to the nation’s challenges have always come from innovative people in the private sector.  alliantgroup works with business owners in many industries to secure R&D tax credits that fund the development of those solutions.  Projects that qualify for these R&D incentives are technological in nature and produce better processes and products that make our nation great.  Costs associated with R&D, including labor, supply and contractor costs, are offset by the direct reduction of tax liability.  Alliantgroup teaches companies how they can sustain the current operation that generates profit while acquiring the funding necessary for research and development efforts.

The oil and gas industry has been shackled by overwhelming federal regulations, but Alliant Group encourages every energy company, including oil field services companies to embrace R&D tax incentives. If your business is already claiming R&D credits, it may also make sense to have Alliant Group take a fresh look to insure you are claiming all available credit.

In response to our nation’s search for less dependence on foreign sources of oil, engineers, scientists, and technicians have accelerated their search for improved ways to access natural resources in our country. Major producers qualify for R&D tax credits when their projects are intended to design a custom product, construction technique or engineering design. Advancements of this nature can revolutionize the approach to energy sources for the entire industry.  Alliant Group shows companies how R&D tax credits can be used as an essential part of the formula to reach energy independence..

Exploration activities are considered part of the oil industry’s existing business and will not qualify for the R&D tax credits. However, Alliant Group has worked with energy companies that have created new ways to access and direct oil through the upstream and downstream facilities.  In one example, Alliant Group helped a company saved $280,000 in taxes on the labor costs of project managers, engineers and CAD drafters that participated in the project by securing R&D tax credits.

Alliant Group assisted another company to find appropriate R&D tax incentives to support their efforts to create customized control unites for blow out preventers used in deep sea oil drilling systems.  Often, every expert on the project is working on R&D activities that qualify for the tax credits. Alliant Group works with businesses to determine which activities qualify and how to structure the project for maximum tax benefit.  Companies are urged to contact Alliant Group early in the project definition process to learn how the R&D tax credits can assist with project expenses.  Partnerships with Alliant Group ensure that companies have the funds necessary to continue to make additional investments in innovation and keep and create jobs in this country.

Alliant Group Explains Energy-Efficient Incentives (Section 179D): Tax Benefits for Architects, Engineers and Builders

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Alliant Group has an experienced team of engineers and tax professionals including CPAs, attorneys, and the former Commissioner of the IRS who understand the 179D energy-efficiency tax incentive.

What is 179D?

“The Energy Policy Act of 2005 (EPACT 179D) was enacted to create immediate potential tax savings for architects, engineers and building owners, for the use of certain energy-efficient construction or improvements,” according to Alliant Group’s Dean Zerbe who is the former Tax Counsel to the U.S. Senate Finance Committee. 179D is a tax deduction to aid in the construction of more energy efficient buildings. The expiration of this tax deduction was extended to 12/31/2013. The Section 179D tax deduction created is between $0.30 and $1.80 per square foot depending on the type of systems installed.

Can architects and engineers qualify?

Alliant Group’s Valerie Ward says, “Yes!” The Senate intended to encourage government agencies to also build energy-efficient buildings. In that light, the law allows a local, state, or federal government (e.g. schools and public universities) entity to transfer the 179D tax benefit to the architect, engineer or builder who designed or constructed the building. The government can go back to buildings and improvements placed in service in the last three years.

Alliant Group has assisted architects, engineers, and builders in capturing the benefit from 179D. “The architect or engineering firm is assigned the tax benefit from the government agency via an Allocation Letter,” according to Alliant Group’s Dean Zerbe.


How can I get the 179D if I’m the architecture or engineering company?

If you are the architect or engineer who designed (or retrofitted) a government building that’s more than 50,000 square feet, Alliant Group will assist you in obtaining  the allocation letter from the government agency. Remember, there may be more than one designing architect, engineer, contractor, etc  (the term is quite broad under the law) who may be eligible for the allocation letter from the government, and the government can divide up its allocation among a number of eligible firm involved in the construction or renovation. “Time is of the essence,” notes Alliant Group’s Valerie Ward, “so move fast to get the allocation letter before someone else takes advantage of this energy-efficiency tax incentive. Or better yet, incorporate the tax benefit in the initial contract negotiations.”


Alliant Group can help

Alliant Group’s services include:

•             No cost preliminary analysis and assessment

•             Energy modeling to certify qualified projects

•             Comprehensive product deliverable

•             Tested and proven audit defense

Contact Alliant Group today and let us help you take advantage of available energy-efficiency tax incentives! Call Alliant Group now at 800.564.4540.

alliantgroup Assists Architects, Engineers, Builders, and Contractors with Energy-Efficient Tax Deductions

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Two of the top priorities of the current Administration and of Congress are to lessen our nation’s dependency on foreign energy sources, and to revitalize the U.S. economy.

In response to these national and critical priorities, Congress enacted Section 179D of the Internal Revenue Code as part of its 2005 Energy Policy Act to encourage the energy-efficient design and construction of new or rehabilitated properties. Originally written to award commercial building owners with accelerated depreciation for their investment in energy-efficient design, Congress realized that the benefit was not being claimed in a great many construction projects as the projects were government-owned. Since the government does not pay tax, there was no tax benefit afforded to the architects, designers, engineers, builders or contractors.

For this reason, the tax code was amended a few years ago to allow government owners of buildings to allocate potential Section 179D deductions to providers who were responsible for their contribution to the energy efficiency of a qualifying building. Now, qualifying businesses can receive up to $1.80 per square foot in deductions for eligible projects placed into service any time from 2006 to 2013.

alliantgroup works with qualifying companies to successfully obtain government allocation letters so the tax benefit may be applied to businesses involved in developing these projects.  This is the only tax incentive designed to benefit an industry that has sustained an enormous negative impact with the faltering economy over the last few years. When government owners of buildings approve the allocation of this benefit to the private sector, it furthers the cause of energy conservation and helps to stimulate the American economy.

Government projects that qualify for allocation include properties that incorporate the design and installation of energy-efficient interior lighting, HVAC, hot water, or building envelope systems. Projects include construction or renovation of:

  • Schools
  • State universities
  • Libraries
  • Town halls
  • Airports
  • Transportation facilities
  • Post offices
  • Court houses
  • Military bases
  • Government offices
  • Parking structures, and more

alliantgroup’s team of experienced tax professionals can assist you in securing 179D tax benefits. Contact Valerie Ward at 949.809.2170 or valerie.ward@alliantgroup.com.