AJS Consulting Engineers P.C.

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Tony’s Tip

IT’S TAX TIME AGAIN: WELL, NOT REALLY BUT YOU NEED TO START PLANNING NOW.

How does building engineering relate to taxes? Owners and developers of commercial buildings can deduct part of the cost constructing energy efficient buildings. Energy efficient improvements to existing buildings, including the mechanical and lighting systems within the building also qualifies. This deduction allows an immediate deduction for an investment that would otherwise be depreciated over 40 years.

Know before you buy! We have found on some buildings the design falls short of qualifying by a % point or two. A small change in the design to capture these last few points could be well worth the investment. If you are planning a new building or upgrading an existing building, have the energy study and documentation completed before your design is complete. You will know now if the building qualifies before purchasing the equipment.

Already built? If you have already purchased or installed the energy efficient improvements we can perform the energy study now and have the documentation ready for tax time. If the building qualifies, great. If the building does not qualify, sometimes a small additional investment could bring the building system into compliance.

What projects potentially benefit?

· New buildings, particularly if you are targeting LEED or Energy Star.

· Improvements to existing buildings. If you are planning a major upgrade to lighting or HVAC systems this may provide additional funds for the project.

· Government projects also qualify!! The benefit accrues to the designers.

· Generally projects over 40,000 square feet.

Who potentially benefits?

· Developers of new commercial buildings.

· Owners of existing building making improvements.

· If you are an architect, engineer or design build contractor working on a government building.

Any Questions, Projects, Contact us.

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Specializing in Multi-Family, Food Service and Medical Engineering Services