Commission approves allocation of IRS 179D deduction to architect for DMV project
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Summary
The Clay County Board authorized county staff to execute documentation allocating the IRS 179D energy-efficiency tax deduction to the project architect for the DMV facility; staff said the gross deduction value is about $6,293 with an application fee of $3,000.
County staff asked the board on June 24 to authorize allocation of the Internal Revenue Code Section 179D energy-efficiency commercial buildings deduction to the project architect for the DMV facility.
A county presenter explained architects or designers may request allocation of the 179D deduction for qualifying energy improvements in new construction or remodels; because government entities cannot claim the deduction, the county can allocate the deduction to the private designer. Staff said the estimated gross value of the allocation for the DMV project would be roughly $6,293, offset by an approximately $3,000 application fee, producing a modest net benefit to the architect.
Commissioner Ebinger moved to approve the request and authorize county staff to execute the necessary documentation allowing allocation of the IRS 179D energy-efficiency tax deduction for the DMV facility project; Commissioner Baer seconded the motion. The board voted aye and the motion carried. Staff said a prior request to Gertz Construction to be a cost sponsor for the allocation had been declined, and that staff would submit the allocation application.