§179D Tax Deduction – High School – Energy Service Companies (ESCO’s)
AT A GLANCE
Building Type: High School
Sector: Public/Tax-Exempt
Taxpayer Type: Energy Service Companies (ESCO’s)
Location: Millersville, PA
Service: Education
Tax Incentive: §179D
Total SF: 415,382
PROJECT OVERVIEW
his High School entered into a Performance Contract with an Energy Service Company (ESCO) and used a variety of Energy Conservation measures (ECMs), including overhauling the lighting system with LEDs and upgrading the HVAC system. Some of the HVAC upgrades included new condensing boilers and DX Roof Top Units (RTUs).
Making the correct capital improvements on your building can be essential to the amount of energy cost savings you will achieve. Improved indoor air quality (IAQ), occupant wellness, and lower maintenance costs are just a few other benefits associated with the correct system upgrades. The improvements made by this school allowed them to achieve a significant 68.13% in energy cost savings.
The successful implementation and upgrade to various systems have made the ESCO who was the designer of the EECBP eligible for a §179D Tax Deduction of $780,918.16
ENERGY MODELING PARAMETERS
PARAMETER
- Interior Lighting
- Envelope
- HVAC
REFERENCE BUILDING MODEL
- 90.1-2007 minimum requirements
- 90.1-2007 minimum requirements
- 90.1-2007 minimum requirements
PROPOSED BUILDING MODEL
- 0.26 W/SF
- Wall R-26 / Roof R-29
- Daikin RTU’s 18.2 EER
Boiler Fulton 97% AFUE
SYSTEMS OVERVIEW
LIGHTING
Upgraded: YES
Previous Tech: Fluorescent
New Tech: LED’s
New Brand: Lithonia
HVAC – HEATING
Upgraded: YES
Previous Tech: Fire-Tube
New System: Condensing
New Brand: Fulton Vantage
HVAC – COOLING
Upgraded: Yes
Previous Tech: RTU CAV
New Tech: RTU VAV
Brand: Daikin
§179D COST BENEFIT ANALYSIS
TOTAL BLDG SQ. FOOTAGE
TAX BRACKET
TOTAL SQ FOOT DEDUCTION
§179D TAX DEDUCTION CASH VALUE
415,382
30%
$5.36
$234,275.45
Walker Reid is a licensed professional engineering firm that specializes in performing §179D studies. Through our extensive experience, we have been able to refine our processes to maximize financial benefits while reducing our client’s internal costs and efforts.
As an industry leader, Walker Reid, actively participates in numerous national organizations related to both energy efficiency and specialty tax services. Our staff of experienced engineers and advisers are well versed in various energy and tax-related policies.
Additionally, our engineers are trained and certified energy raters who come prepared to perform accurate site audits and energy analyses.
Ruben Abreu, P.E., CEM®
Principal Engineer
