Who Is Considered A “Designer” For The 179D?

So you’re a designer but you’re not quite sure if you are considered a “designer” for the purposes of getting the 179D tax deduction? Well, that is what this post is going to try to help you determine.

For starters, the IRS defines a designer for the purposes of the 179D as follows:

A designer is a person that creates the technical specifications for installation of energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D).  A designer may include, for example, an architect, engineer, contractor, environmental consultant or energy services provider who creates the technical specifications for a new building or an addition to an existing building that incorporates energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D).  A person that merely installs, repairs, or maintains the property is not a designer.

Okay, that is all fine and good, but what does that mean practically? Here are some example to help you better determine if you would fit the criteria; If you design any of the following, you very likely WOULD qualify:

• The building envelope

  • Exterior doors, exterior walls, exterior windows, roof, concrete slab/foundation

• Interior lighting

• HVAC Systems

• Domestic hot water systems

To clarify, you do not need to be a registered design professional (professional engineer or registered architect) in order to qualify. On the other hand, you certainly will need to prove that you have developed technical specifications, which could include drawings, code compliant calculations, etc., pertaining to any of the above listed building systems.

Finally, installers are not considered designers for the purposes of the 179D, and would not qualify.

Ready to get started? Any questions? Apply now and we’ll hold your hand through the whole process!