Allocation Process

In addition to the building owners and lessees who make the energy-efficient improvements to their commercial buildings, designers of government-owned buildings can also qualify for 179D under a special rule for public property. Under this rule, eligible businesses include architects, engineers, design-build contractors or energy service companies that have performed energy-efficient work on new government buildings or renovations/retrofits of existing government buildings.

For companies to receive this deduction however, they must secure an allocation letter that allows the government entity to transfer the benefit to the taxpayer. The IRS has specific guidance regarding the information required in the allocation letter, so it is highly recommended that this process be facilitated by a qualified consultant.

At alliantgroup, we have on staff a Government Relations Department dedicated to securing allocation letters on behalf of our clients. alliantgroup has secured signed allocation letters from government entities in all 50 states.