Energy costs consume a major portion of every facilities budget. Recently a new law went into effect that could provide a tax break when energy management systems are installed in certain buildings.
The Protecting Americans from Tax Hikes (PATH) Act, has been extended along with more than 50 expiring provisions of the tax code. The bill included a two-year extension of the Energy-Efficient Commercial Building Deduction, or section 179D of the tax code.
The owner of an eligible building can claim 179D and qualify for what can be a $1.80 per square foot tax deduction. Owners of these buildings can allocate the accrued tax savings to the businesses responsible for the energy-saving enhancements. In order for a building to qualify for the deduction, the energy based improvements must be made to either the HVAC, hot water or interior lighting systems or to the building’s envelope.
HOUSTON, Feb. 11, 2016 /PRNewswire/ — Near the end of last year, Congress passed and President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act, a broader, bipartisan tax bill that extended (and in certain instances, made permanent) over 50 expiring provisions of the tax code. Among a host of other pro-business tax provisions, the bill included a two-year extension of the Energy-Efficient Commercial Building Deduction, or section 179D of the tax code. alliantgroup applauds both the PATH Act’s extension and modification of section 179D, citing the tax deduction as not only a vital incentive for U.S. job creation and economic growth, but also as sound environmental policy.
“By extending 179D, Congress has done architects, engineers and contractors a major favor as we have seen firsthand how this incentive has helped companies expand both their workforce and the scope of their services,” said Dean Zerbe, alliantgroup National Managing Director and former Senior Counsel to the U.S. Senate Finance Committee. “Not only is 179D critical to the success of U.S. designers and builders everywhere, it is simply just good tax policy, taking a completely technology neutral approach to incentivizing energy-efficiency.”
Section 179D was originally passed by Congress as part of the Energy Policy Act of 2005 in response to data from the U.S. Department of Energy showing that 73 percent of all electricity consumption was by buildings, with about half of that coming from commercial buildings. The owner of an eligible building can claim 179D, but in an effort to allow architects, engineers, construction companies and energy service providers to qualify for what can be a $1.80 per square foot tax deduction, section 179D allows eligible designers and builders to qualify through energy-efficient enhancements made to government-owned buildings at the federal, state or local levels. As government entities do not traditionally pay tax, the owners of these buildings can allocate the accrued tax savings to the business responsible for the energy-saving enhancements.
In order for a building to qualify for the deduction, the energy based improvements must be made to either the HVAC, hot water or interior lighting systems or to the building’s envelope. The PATH Act retroactively extends section 179D for 2015 and into 2016, but stipulates that buildings placed into service this year must meet ASHRAE 2007 standards as opposed to the old ASHRAE 2001 baseline. The bump up in the standard is a policy nod to modernizing energy-usage techniques and the need to raise the thresholds accordingly.
“The extension of 179D is tremendous news for our clients,” said alliantgroup Senior Managing Director Rizwan Virani. “Even with the higher baseline beginning in 2016, 179D will remain broadly applicable to architects, engineers and contractors across the country. The deduction will continue to provide these companies the funds necessary for broader reinvestment and will allow them to be more competitive not only in their bids, but serve to make them more competitive in the marketplace as a whole.”
Powerhouse is always seeking team members who embrace our core values of great service, honesty, integrity and making a positive impact on others’ lives. Our company is dynamic and growing, and we regularly post job openings nationwide. Below are our current positions open for application:
PROJECT MANAGER Overview: The Project Manager is responsible for overall management of the client relationship and the project from development and review of the estimate to project completion and closeout. Full job description HERE.
ASSISTANT PROJECT MANAGER Overview:The Assistant Project Manager assists in the implementation of the guidelines and requirements to complete a project within budget and time frame. Full job description HERE.
PROJECT COORDINATOR This position, under the supervision of the Project Manager(s), and in collaboration with the Assistant Project Manager(s) assists in the implementation of the guidelines and requirements to complete a project within budget and time frame. Overview: The Project Coordinator is responsible for working closely with the APM and PM assigned to specific projects to complete paperwork, processes and tracking duties. Full job description HERE.
CONSTRUCTION SUPERINTENDENT Powerhouse Retail Services is a progressive company looking for high energy, positive people! Attention to detail, ability to work as a team and a positive attitude are a must! May require work in the evening or overnight. Must be able to travel extensively. Experience in Retail/Restaurant Construction environment preferred. This is a hands-on position! Full job description HERE.
The more you linger…the more you buy. Great piece on the Today Show about holiday shopping trends. According to the Boston Consulting Group, 72% of millennials would rather spend their money on experience vs. product. Give them both & it’s a winning combination.
The Professional Retail Store Maintenance Association recently released their 2016 Trends Report. Among the top forecasted trends was the “Internet of Things.” To put it simply; how facilities maintenance crews are integrating technologies to gain true business intelligence.
“Technological advancements have transformed the work of facilities maintenance and the management of facilities operations. Smartphones and tablets have unleashed numerous innovations to help business get done, but these advancements have not gone far enough. There’s too much data – produced and gathered from too many different resources, and not enough integration to make sense of it all or capitalize on potential savings.” PRSM 2016 Trends Report
Big projects equal big data, but what good is the data if you’re not putting it to use to better understand your business & make decisions that equal better efficiency?
Powerhouse built a dynamic system that we use to create successful projects, but also allows clients to access site data they don’t typically get. Powerhouse clients are able to review and evaluate that data through our real-time information management system, Infinity by Powerhouse. Through Infinity, you can access graphs, charts and other information that shows exactly how each component of the project is progressing. Photographs and renderings are all conveniently accessible, right at your fingertips.
We developed Infinity to be the most comprehensive data management available. Each time new data is entered at a work site, Infinity is updated as the information is collected, providing you with up-to-the-minute information. Infinity can also send status reports to your email inbox.
Communicate the most recent data
Expedite issue resolution
Ensure quality control
Monitor progress so deadlines are met
Evaluate future needs & opportunities
PRSM’S full 2016 Trends Report is available to read online HERE.