Phase 1
No-cost eligibility review
Share facility basics. We confirm order-of-magnitude savings range, rate era (pre-2023 vs 2023+ / PWA), and go/no-go.
Typically 1–5 business days once we receive complete facility information.
EPAct 179D tax deduction
Do past HVAC or lighting upgrades qualify for EPAct 179D?
Many manufacturing, distribution, and warehouse facilities with HVAC, LED lighting, or envelope work since 2006 meet the 25% energy-savings threshold. Modern retrofits on older buildings often qualify. This no-cost EPAct 179D eligibility review checks whether yours may, without promising a deduction. Independent PE path; your CPA files the return.
No-cost eligibility review · PE certification · Your CPA files the return
Independent PE certification. Your tax advisor files the return. We provide IRS-aligned engineering documentation where records support eligibility. Your CPA remains responsible for applying the deduction and for the client relationship.
Certification is led by a practicing engineer who understands plant operations and zero-disruption constraints, not a pure energy modeler or tax firm.
Stephen M. Smith, PE
(980) 485-5519
What we need for Phase 1
Simple eligibility checklist
Enough data for a credible go/no-go screen. Full modeling and site work come only after a clear go.
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01
Building identity
Name or address and approximate total conditioned square footage.
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02
Placed-in-service era
Year(s) systems were placed in service. Group as 2006–2022 or 2023+.
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03
Systems upgraded
HVAC, interior lighting, and/or building envelope.
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04
Installed cost
Approximate equipment + labor cost of the energy-efficient property.
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05
Supporting records
Invoices, cut sheets, drawings, or utility data if a measurement path is preferred.
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06
PWA status (2023+ only)
Prevailing wage + registered apprenticeship met during construction? Yes / No / Unknown.
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07
Primary contact
Name and work email for follow-up from the PE.
Estimate deduction
Estimate potential deduction range
Square footage × applicable rate, limited by eligible install cost when provided. Not a claim amount, quote, or eligibility determination.
Estimate only. Final amounts depend on statute, modeling or measurement, eligible costs, and your tax advisor’s application of the deduction.
2006–2022
| Energy savings | Base rate ($/sf) | With PWA ($/sf) |
|---|---|---|
| Partial / system path | up to ~$0.63 | — |
| 50%+ whole building | up to $1.88 | — |
2023–2026
| Energy savings | Base rate ($/sf) | With PWA ($/sf) |
|---|---|---|
| 25% | $0.59 | $2.97 |
| 30% | $0.69 | $3.57 |
| 40% | $0.89 | $4.77 |
| 50%+ | $1.09 | $5.94 |
Pre-2023 partial amounts were inflation-indexed (about $0.60–$0.63/sf under prior system paths). Pre-2023 max ~$1.88/sf at 50%+ whole-building savings. 2023+ rates per IRS Rev. Proc. 2025-32 (tax year 2026 framing). PWA rates apply only when prevailing wage and registered apprenticeship were met during construction of 2023+ property (not retroactive). Deduction is the lesser of rate × area or eligible property cost. New construction beginning after June 30, 2026 is not eligible under current law (OBBBA); look-backs on completed upgrades can remain viable.
How it works
Two clear phases
Proposal options and commercial terms are presented after Phase 1, not on this page.
Phase 2
PE certification package
Modeling or measurement pathway as records support, site verification as required, and IRS-aligned documentation for your tax advisor.
Typically 2–3 weeks after engagement and receipt of supporting documentation.
Example results (pre-2023 era)
Verified look-back outcomes
Results depend on facility, records, and statute. 2023+ projects can reach higher rates when PWA and savings thresholds are met; we do not invent figures beyond measured engagements.
$168,000
Manufacturing facility
280,000 sq ft · 2017 LED retrofit
$315,000
Distribution center
175,000 sq ft · 2018–2019 HVAC & insulation
$216,000
Food processing plant
Retroactive look-back · multi-system upgrade
Phase 1 request
Start the no-cost eligibility review
Submit the checklist fields below. An engineer responds within one business day with next steps, or an honest pass if we are not the right fit.
FAQ
Questions we get
- Can completed upgrades still qualify?
- Often yes. Look-back studies on completed HVAC, lighting, and envelope work remain a core path when records support the claim. Applicable rates depend on when the upgrade was placed in service. Your tax advisor applies look-back and prior-claim limits.
- Is the calculator a real deduction amount?
- No. It is an orientation tool only. Only a certified study plus your tax advisor’s filing produces a deduction on the return.
- Do you prepare the tax return?
- No. We provide independent PE certification and documentation. Your tax advisor applies the deduction.
- Need a full plant energy path instead?
- When ranked ECMs and uptime-aware measures are the decision, start with industrial energy audits. 179D stays a focused certification path inside the broader practice.
- Industrial energy audits →
Engineering certification and documentation only—not tax preparation or legal advice. Consult your tax advisor. Deduction limited to eligible property cost placed in service; prior-year claims can reduce current-year maximum. PWA-enhanced rates apply only to property placed in service on or after January 1, 2023 when prevailing wage and apprenticeship requirements were satisfied during construction. New construction beginning after June 30, 2026 is not eligible under current law (OBBBA). Retroactive look-back studies on completed upgrades can remain viable. 2023+ standard rates framed to IRS Rev. Proc. 2025-32 (tax year 2026). Pre-2023 cap ~$1.88/sf at 50% whole-building savings; partial paths under prior rules were lower and inflation-indexed.