As the official sponsor of American Innovation and Job Creation, alliantgroup has the pleasure of working with a variety of AEC industry clients on their 179D Tax Deduction Studies. The results of these studies are as diverse as our clients are. Remember, the legislative intent behind 179D was two-fold: (1) incentivize the energy efficient design of government buildings, and (2) bolster the AEC industry. The idea was to reward companies for their contribution to our energy independence. For one alliantgroup client the tax savings from 179D may have saved it from going out of business.

Despite the industry growth and stabilization over the past several years, this particular specialty engineering firm had seen its business slowly “taper off.” Fighting to reestablish itself with new initiatives, the company’s business struggled as it redefined its initiatives and jockeyed for market position. They design very precise HVAC systems for buildings with laboratory equipment, and in prior years, their projects did not qualify for 179D.

In 2014 it was looking like it was going to be more disappointment, but the alliantgroup technical engineering team was able to identify more than $600,000 in 179D deductions on qualified buildings, which yielded immediate tax savings and increased cash flow as the deductions were claimed on their timely-filed, current-year tax return. The owner of the company recently wrote a heartfelt letter to alliantgroup sharing his experience, which closed by saying “Before the 179D study, I was wondering how I was going to make payroll, and I was not able to give my full mental energy to anything because of this concern, you took that fear away.”

He went on to share that they have since been able to hire more engineers and expand their business to design more government laboratory buildings. Our mission is simple: Strengthen American Business. For this client, mission accomplished.

We love to hear stories about the ways our clients 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 (713) 877-9600 or email us at contact@alliantgroup.com.