
Incentives Total:
$181,000 deduction under Section 179D
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Colorado High School HVAC Renovation Earns $181K in 179D Deductions for Engineering Firm
A 288,000-square-foot high school in Fort Collins, CO, recently completed an HVAC renovation aimed at improving energy efficiency and reducing operational costs. By upgrading to a modern, high-performance heating, ventilation, and air conditioning system, the school achieved a 27% reduction in energy consumption compared to the ASHRAE 90.1 standard, resulting in significant cost savings and sustainability benefits for the district.
Although public schools cannot directly claim tax deductions, the Inflation Reduction Act (IRA) allows tax-exempt entities to allocate 179D deductions to eligible design firms. As a result, the engineering firm responsible for the HVAC design and implementation was allocated a $181,000 deduction, providing a valuable financial benefit for their expertise in energy-efficient solutions. TaxTaker facilitated the energy modeling, site verification, and certification process, ensuring full compliance and maximizing the available deduction. This case highlights how engineering firms can leverage 179D allocations for public school projects, while schools benefit from long-term energy savings, reduced carbon footprints, and enhanced learning environments.