179dIn the past several years, Congress and recent administrations have placed a huge emphasis on green building initiatives. In order to counter problems that we are facing in energy, Congress passed the Energy Policy Act of 2005 that created a tax incentive that relates to the design and installation of energy efficient interior lighting, HVAC, hot water, or building envelope systems in commercial buildings. Through this incentive found in section 179D of the Internal Revenue Code, qualifying businesses can receive up to $1.80 per square foot in deductions for eligible projects placed into service any time from 2006 to 2014.

The most important step in the 179D study process is securing authorization from government entity property owners in the form of a 179D allocation letter. Many of our 179D clients express concern about the allocation letter process. They are uncertain how their clients will respond to the request for authorization of a tax incentive for their benefit.

One particular client, a consulting engineering firm that specializes in the design of MEP systems for higher education, aviation, healthcare and government facilities, had been considering pursuing 179D for more than a year before engaging alliantgroup to conduct its 179D study. This engineering firm’s principals initially had apprehension about the allocation letter process, and considered another provider during their research. Ultimately, they chose alliantgroup based on our strong track record of delivering results.

At the beginning of the study, the principals expressed that their client relationships were of paramount importance and that no amount of deductions would be worth damaging those relationships. alliantgroup’s government relations team is always sensitive to the fact that we are calling upon our clients’ clients, and this case was no different.

At the end of the study this client wrote a raving testimonial letter relating their experience, in which they stated, “In your handling of the allocation letters, your team demonstrated great professional sensitivity and respect for our client relationships. We made it clear that our business partnerships were of the utmost importance and that we could not accept anything that would compromise those relationships. The professionals at alliantgroup however had no problems managing these partnerships.”

The letter closed by saying that they were very happy with alliantgroup’s project management, as the level of service demonstrated was in line with the level they strive to provide their own clients.

We love to hear stories about the ways our clients procure and use their tax credits and incentives to re-invest in their business. Please contact us to share your story and let us know how you are investing in new products, processes, designs or inventions that make your business more competitive. And if you would like to find out how your business can benefit from energy efficient design and other tax incentives and credits available to small and mid-sized businesses, please give us a call at 800.564.4540 or email us at contact@alliantgroup.com.