Owners

  • The EPAct 179D Tax Deduction is a U.S. federal tax incentive that encourages energy-efficient building design. It allows building owners or designers to claim a deduction for the cost of energy-efficient improvements made to commercial buildings, such as lighting, HVAC, and building envelope systems. This deduction aims to promote energy conservation and reduce overall energy consumption in buildings.

  • Owners of propeties that have work done in HVAC, interior lighting, and building envelope. This can be for a new construction or a retrofit project.

  • It depends on the specifics of each case, but it could be to $5.65 per square feet of the building worked on. For example, if the qualified building is 100,000 square feet, that could mean up to a $500,000 tax deduction.

  • Eligible improvements for the 179D deduction include energy-efficient upgrades to lighting, HVAC (heating, ventilation, and air conditioning), and building envelope systems (like insulation and windows) in commercial buildings.

    • Commercial buildings

    • Residential buildings greater than 3 stories

    • The Inflation Reduction Act has now made the 179D for building owners a permanent part of the law.

    • It also allows owners to take the 179D as frequently as every 3 years.

    • It increased the eligible amount up to $5 per square foot.

Designers

  • The EPAct 179D Tax Deduction is a U.S. federal tax incentive that encourages energy-efficient building design. It allows building owners or designers to claim a deduction for the cost of energy-efficient improvements made to commercial buildings, such as lighting, HVAC, and building envelope systems. This deduction aims to promote energy conservation and reduce overall energy consumption in buildings.

  • Architects, engineers, and contractors that work on new or renovated non-profit businesses OR government-owned buildings and structures. This includes things like schools, military bases, courthouses, prisons, hospitals, universities, libraries, parks, and airports.

  • It depends on the specifics of each case, but it could be to $5.65 per square feet of the building worked on. For example, if the qualified building is 100,000 square feet, that could mean up to a $500,000 tax deduction.

  • Eligible improvements for the 179D deduction include energy-efficient upgrades to lighting, HVAC (heating, ventilation, and air conditioning), and building envelope systems (like insulation and windows) in commercial buildings.

  • Eligible entities that can claim the 179D energy efficiency tax deduction include:

    • Federal, state, and local government agencies.

    • Public educational institutions, including schools and universities.

    • Public hospitals and healthcare facilities.

    • Nonprofit organizations.

    • Public housing authorities.

    • Tribal governments and entities.

    • Public transit systems and agencies.

    • Airport authorities.

    • Certain energy cooperatives.

    • Nonprofit organizations providing ambulance, emergency medical, and firefighting services.

    Please note that the eligibility criteria and specific details may vary, so get in touch with us if you’d like to learn more.

  • Before 2023, architects, engineers, and design-build contractors could get rewards for energy-efficient projects they designed in government-owned buildings. But now, starting in 2023, they can also get rewards for their designs in certain tax-exempt places. This means more types of buildings can now join the energy-saving program!

    Also, the Inflation Reduction Act made the program even better. Now, the reward is up to $5.00 per square foot.

General

  • Property tax abatement is a reduction or exemption in property taxes granted to property owners, typically for a specific period, as an incentive to encourage development, rehabilitation, or investment in certain areas.

  • Eligibility varies based on local laws and programs. Generally, property owners who improve their properties, invest in designated zones, or meet specific criteria outlined by local governments may qualify.

  • The process typically involves assessing your property’s eligibility, submitting an application to the relevant local authority, and providing required documentation. Once approved, the abatement reduces your taxable property value or tax rate.

  • Yes, but the process can be complex and time-consuming. A professional property tax abatement company like Credistry can help streamline the application, ensure compliance, and maximize your savings.

Services

  • We assist property owners with property tax assessments, eligibility evaluations, abatement applications, appeals, and ongoing compliance.

  • We perform a detailed analysis of your property, its improvements, and local abatement programs to determine eligibility.

  • We work with both residential and commercial property owners. Whether it’s a multi-family building, or commercial development, we can assist. The minimum tax liability we work with is $50,000.

Fees

  • Our fees are contingency-based, meaning we only charge a percentage of the tax savings we secure for you. This ensures no upfront costs.

  • No. We operate transparently and will provide a clear breakdown of any charges upfront.

Timelines & Outcomes

  • Timelines vary depending on the jurisdiction and complexity of the case. It can take anywhere from a few months to a year.

  • Yes, after the abatement period ends, property taxes typically revert to the standard rate based on the full assessed value of your property.

  • In many cases, abatements are transferable to new owners, but this depends on the terms set by local authorities.

Common Concerns

  • This depends on local laws. In some cases, improving your property or applying for an abatement might prompt reassessment.

  • If your application is denied, we can assist in filing an appeal or exploring other potential savings opportunities.

  • Abatements encourage investment, improve infrastructure, and enhance property values, which can lead to economic growth and revitalization of communities.