ACEC/VA Encourages Senator Warner on 179D Payments
In May, ACEC/VA wrote to Senator Mark R. Warner to encourage him to contact Treasury Secretary Mnuchin to clarify the Internal Revenue Code Section 179D energy-efficient commercial buildings tax deduction.
ACEC/VA members engage daily in a wide range of work that enhances and safeguards the quality of life of its citizens. A number of our member firms design energy-efficient systems that may qualify for the Section 179D deduction. Under the statute, engineering firms that do this kind of design work for governmental clients may be eligible to have the deduction allocated to them.
Some government entities and their intermediaries have solicited payments in exchange for signing the allocation letter. ACEC and other stakeholders have consistently opposed this practice at the federal, state and local levels. We believe that requiring payment from the designer in exchange for allocating the tax deduction is contrary to congressional intent. A letter from Senator Warner to address this problem could assist in the clarification that requiring payment from the designer in exchange for allocating the tax deduction is contrary to the Congressional intent when it was passed.