HomeMy WebLinkAboutIRS Tax Deduction - Musgrove EngineeringIRS §179D Permission Form
Tax Deduction for Energy Efficient Commercial Buildings
We are fo1warcting this leller toyou for informational puq>OSCS as well as to request your approval nnd
determination of all applicable tax deductions.
Facility: Boru1evilleJoi11t School District# 95, Thunder Ridge High School
In ~11111mary, tux dcduclion l nm was implemented in 2006, and provided for a tax cfoduction lo building
Owuers that meet stipul11ted energyefficiency standJmfs for 001111nerdnl pn>jccts completed in 2006. Thetax
credit has now been (~J<tcnded to projects completed through 2018.
Wil:hin I 79D, tltcre is n special rule for "Government Owned l>uilclings'', where the tax credit available. c1u1 be
;tllocated to the pro,ject designcr(s). More specifically, the exact wording of 'I 79D is us follt,ws:
SeLtjO!l $, ~in!ruJe ror CovenUncnt ·.Qwned building..~
.0 1 !11 (iei-1cm!, In the case of energy efficient ~ornrnc1'Cial buildilig property (or partfally
gttalifying co1nmerci11l buildi.n& proporty for which H dcd(.lc\ion is allvwcd under§ 170[)) t.hal is
insl111lcd on or in pl'Opeity owttcd }Jy u federal, Slate, or local government or a. polilicnl subtlivision
tl!cre,1f, the owner of the propcl'ty 11111y allocate the§ 1790deduction 10 the person primarily
rc:lponswle for dcs\.'Vling the property (the designer). Ifthe allocation of a§ 1nm deduction to a
designer satimes the requiremcnl8 of this :rection, lhe deduction wifl be allowed only to that
cfosigncl', Tlte deduction will be allowed to the designer for the taxable yenr that includes the date
on which lite property is plnced in service .
.02 DCJf.'?11er ofGovcrumeJ?t-Ownetillulfdin,_gs. A designer is a person thal crentes the roc:hnicaJ
specifications fo!' installation of ener&Y cfficien! comm~rcial huilc!il\~ propcl'ly (or partially
q\tahfymg commercial building property fO\" which n deduction is nllowt-.d undc1· § 1790). /\
designer may include, kn: example, nn un:hitcct, enginetr, coniracllw, environmental consultant or
e11e.r3y :ierviccs pmvid~r who crea!e~ tht technical specifkations for n nt."w building or nn addition
w au exi.,til1$ b11ildin3 1l:mt incorpo1•ates e.nerzy efficient commercial l>ufldin$ property (cw
partially qualifying conunercinl building prope1ty for which n deduction is allowerl uruJer §
179D). A person that merely installs, ropairs, or muint.uins the property is m1t a designer.
.03 Alkx,wlion ofthe Deduction, lf more than one designer is responsible for cn:ating lhe techni<'.al
speciiic11tiol\3 foC' ir1stnll11tior1 of c11er~y efficient co111merciul building property (or par.tlt<lly
qualil'yin~ commercial building properly for which a deduction is allowed under§ l 79D) 011 or in
u govem111ent-ow11cd building, the owner of the building $hnll-··
( I ) Determine which designer is primarily respon3ible and allocate the full dcduclion lo that
desi._~ter, or
(2) At the owner's di.scretio.n, ~!loc1tre tltc deduction urnong scve1•al designers.
As MUb'gl'Ol'C l:Ogineering was the mechanical dc.iigner on the pmjccl in question, we arc 1·e.~pectfully
requesting the followi11g of you:
1. As the steward of the govcrnn1cnl-owntod building, we are requesting that you detenninc that Mus,g.rove
fnginecring be allocttred 100% of the nvailablc § 1 790 tux dwuctions as relnted to the McchaniQI!! sy;terns
oi the fudlity.
At this point in time we have not ai;cert11in~d the final efficiem:y levels ofyour facility, but if you approve this
request a11d we proceed wilh lhe calculations, we will provide you a full copy of these calculutioru; for your. u.se
1111d future reference.
lfyott approve this reqtte$L, please si~!tlld return the attuchcd form. J( yon would like ft) discuss thi~ in
greater t!cpth, please cull and we would be happy to tliscuss unythin& with you.
_ ;;;?.~~
Siznature Dale
Authori:.rod Owner's R.eprosentative{s);
Owuer: BonnevilleJoinl School OLmict
~W9 7 N. Ammon Road
Idnh<) rails, ID t\3401
Jolm Pymm
Director of Facllitie.s illld Open.lions
(208) 557 -9GG7