179D Tax Allocations Provide Source of Savings to The District
LAUSD announced today that it has secured $206,478 in return for the allocation of the 179D tax deduction incentives from recent investments in energy efficient buildings.
The 2005 Energy Policy Act created the 179D tax credit for qualifying building retrofits and new construction projects placed in service between January 1, 2006 and December 31, 2013. While government entities do not pay taxes, under the 179D Special Rule for Government-Owned Buildings, they may allocate the tax credit to a tax-paying ‘Designer’ and receive savings in return.
“As a public agency, LAUSD is not able to take advantage of tax credit savings based upon its high performance school design and construction efforts without Tax Code 179D,” Mr. Finstad indicated. “These savings enable us to reinvest in projects that further the District’s energy efficiency goals.”
LAUSD engaged Efficiency Energy LLC in 2012 to establish and administer the process.
The law expired at the end of 2013; however, it still applies to projects completed between 2010 and 2013. An extension of the program for 2014 and 2015 projects is currently under consideration in the U.S. Senate.
“Extension of this program would allow the District to continue to realize these savings for designing and building energy efficient schools,” said Mr. Finstad. “It’s been a great source of support for our efforts.”