Axiom Solutions
LLLP offers companies in various industrial sectors counsel on tax- and overhead-reduction strategies. The firm has particular expertise in the complex process of claiming and justifying tax credits, generating hundreds of thousands of dollars in client savings. Major
IRS tax credit programs Axiom Solutions assists clients with include the R&D Tax Credit and the Green Building 179D Energy Efficiency Tax Deduction (Green Building Deduction).
Added to the IRS tax code by the Energy Policy Act of 2005, mandated by the Department of Energy, the Green Building Deduction gives businesses the opportunity to claim $1.80 per square foot for constructing new energy-efficient buildings or improving the efficiency design of existing commercial structures. Eligible efficiency enhancements include those that substantially boost the HVAC, interior lighting system, and building envelope sub-system profiles. A 50 percent annual reduction in total energy and power costs allows the maximum $1.80 per square foot claim, while a 25 to 40 percent lighting power density reduction (50 percent for warehouses) allows a partial deduction of $.60 per square foot.
There are several technical hurdles businesses must comply with in claiming the Green Building Deduction. In particular, they must utilize DOE-approved software modeling in creating proper documentation and obtain a signed allocation letter from a municipal building representative.
Axiom Solutions’ Green Building Deduction study process begins with a thorough review of specifications to determine whether the proposed or completed retrofit or new construction is eligible for tax deduction. The firm then undertakes a site visit, conducting energy analysis and modeling with the assistance of in-house certified engineers. The engineers have extensive experience in meeting stringent IRS rules and regulatory standards. When the study is completed, it is turned over to the client company and its financial advisors. Designed to withstand IRS scrutiny, the report is ready to integrate with primary tax forms.
Like many tax incentives, claiming the Green Building Deduction raises the possibility of an IRS audit. As a service to its clients, Axiom Solutions’ basic 40-hour study fee includes future audit support and documentation. Building owners and CPA firms that may qualify for the Green Building Deduction are encouraged to contact Axiom Solutions at 800-915-7120.