Created as a mechanism to stimulate environmentally friendly construction or operations among targeted industries, energy incentives, including three impactful types of federal tax benefits with various requirements, intended beneficiaries, and types of incentives. Named after the section of the U.S. tax code, they include:

• 179D: This incentive is directed toward owners of commercial buildings and high-rise properties or designers of public buildings to boost energy efficiency in construction or renovations. Owners and designers can deduct up to $1.80 per square, depending on how energy efficient the building is.
• 45L: Like 179D, this incentive is targeted to developers/owners of residential and low-rise properties of three stories or less and provides up to a $2,000 dollar-for-dollar credit per unit sold or leased if the property meets certain energy efficiencies. It also applies to affordable housing and other multi-unit residential projects.
• 45Q: Qualified taxpayers can take advantage of this incentive which provides a credit of up to $50 per metric ton of carbon oxide or dioxide (CO or CO2) that is captured and disposed of properly. The energy producer can get up to a $35 per metric ton credit if it captures the carbon emissions and uses it as a tertiary injectant in oil or natural gas recovery, ultimately disposing of the carbon at the end of the process.

These and other energy incentives may expand under the U.S. Administration’s Green Book revenue plan that heavily prioritizes clean energy nationwide.

The requirements to qualify for these incentives are quite stringent. A&M’s Energy Incentives solutions team offers decades long experience in an area of tax in which exacting criteria must be met to qualify for benefits. We accurately calculate the maximum benefit available for our Clients.

Who can benefit from Energy Incentives?

Any business investing in energy efficient technology may benefit from these incentives.

To qualify, companies must meet the various energy efficiency standards set forth in the legislation. A&M knows and understands the criteria required to qualify for the various incentives.

What are the benefits of claiming Energy Incentives?

Many taxpayers consider energy tax savings a crucial component of the overall cost of their projects, so it is important to have an accurate determination, calculation, and documentation of all the incentives for which they are entitled. Other benefits include:

• Reduction in tax liability: By properly claiming the available energy incentives, taxpayers can minimize their tax liability.
• Risk avoidance: The deep expertise and knowledge of the A&M team combined with the monitoring of constantly changing standards and requirements mean Clients will get the full benefit they are entitled to, as well as solid documentation to weather an IRS audit.

Why should you use A&M’s Energy Incentives service?

Many Clients depend on A&M’s accurate and up-to-date knowledge of energy incentive requirements to maximize their tax benefits.

In addition, A&M provides:

• Expertise and continuous knowledge: Each type of federal energy incentive has exacting criteria to qualify for benefits. We offer the knowledge and expertise to meet necessary requirements and use IRS-approved modeling software to provide the documentation to support the claim. We apply new knowledge and experience constantly, so taxpayers can take full advantage of the energy incentives year after year, no matter how legislation changes.
• Supporting documentation: A&M’s Energy Incentives team can provide the necessary documentation to support the claim to the IRS.
• Benefit Discovery: Claims are based on meeting or exceeding certain energy efficient standards that are continuously evolving. We help accurately pinpoint the maximum benefit available at the time the property becomes qualified.