A New Hurdle

Reframe

Maximizing energy tax incentives has a new hurdle, Josh Howes shows us how to clear it.

In this episode of Reframe, show host Jeff Nichols explores the intersection between the designers of energy-efficient buildings and the accounting teams who process the energy tax deductions and credits. Who sits in the middle to provide a bridge between these functions and why is their role so critical? You’ll meet Josh Howes who takes us deep into the world of energy project planning, building assessment, and certification. A civil engineer by trade, Josh is the CEO and co-founder of the Blue Energy Group who found his way into the world of energy incentives back in 2010 when these programs were barely a blip on the radar of most building owners and professionals.

Getting The Ball Rolling

Josh started his business with two primary objectives– first, he needed to respond to designers and building industry professionals asking, “What is 179D and how do I qualify?” Secondly, Josh had to address misperceptions for those who assumed that these incentives were a scam and not real. You’ll hear Josh’s advice for dealing with these objections and explain his process for qualifying projects and where he recommends the best place to start. Josh also shares his views on why energy tax incentives are intentionally allocated unevenly, seemingly to give preference to certain types of build-outs or energy-saving initiatives.

Josh’s team can provide an energy incentive assessment within just a few days but there is a bigger challenge with maximizing the deductions available for 179D. The new 2022 legislation introduced a 5X multiplier for builders who meet certain criteria that have less to do with the benefits of the project and more to do with who’s doing the work. Learn why this is easy for some and why so many others struggle to meet this new requirement. Josh gives us a deep dive into the steps for how building owners, contractors, and designers can clear this hurdle and receive the maximum deduction.

• Get more info about Federally recognized construction apprenticeship programs
• Learn more about the Energy Policy Act of 2005

A New Opportunity

One of the most lucrative aspects of these incentives is the ability to allocate, exchange, or transfer credits. Josh shares the range of circumstances for how energy incentives can be allocated and why this can be crucial to initiating and funding a project. While the rules can be opaque, the flexible options available can benefit all parties and in some cases can be allocated to fully find the work of the project architect or designer.

What Comes Next?

The current landscape suggests that any future extension of energy credits and deductions will likely target specific smart building technologies or industry sectors such as dated schools or hospitals that are overdue for energy efficiency retrofits. Learn how companies like Blue Energy Group are positioning themselves to have a bigger impact on the short and long-term benefits for building owners, designers, accountants, and the folks who occupy these spaces.

Listen and Connect

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Reframe is presented by Pilotlight