As one door closes, another may soon open.
Those of us who are involved in developing properties, designing the buildings and then bringing them to life have seen one significant opportunity come to an end, a financial incentive for the construction of buildings with energy efficiency in mind. But there is the definite possibility that other incentives may be on the way.
One client of our firm was able to gain a meaningful reward for a major project completed during the past year. An older building near their headquarters in Minnesota was acquired and slated for a major expansion and modernization, a project that would allow them to do assembly and maintenance work on large scale pieces of equipment.
This substantial structure has 100,000 square feet, and when the incentive of $1.80 per square foot is applied there is a total financial benefit of $180,000, a not insignificant amount for building owners who like to keep their pencils sharp. The 179D Commercial Buildings Energy Efficiency Tax Deduction required structures to be put in service by December 31, 2016, so that door is closed. But one needs to keep track of what government programs are available that may advantage your company or your clients.
Members of the incoming administration in Washington have spoken repeatedly about the desire to bring about a more robust development economy in the U.S., both commercial and residential. Construction incentives are often a tool used to bring about such an outcome. Make sure to check with your architectural or certified public accounting firm to determine whether such an incentive program can be applied to your project. You could reap a nice return on the time you invest.
Wayne Hilbert, Principal