Mechanical Insulators Labor Management Cooperative Trust (LMCT) Executive Director Pete Ielmini joined the America’s Work Force Union Podcast and discussed the Commercial Buildings Energy Efficiency Tax Deduction, which provides tax rebates to building owners who make energy efficiency improvements to their buildings, including the installation of mechanical insulation.
Ielmini explained the 179D commercial buildings energy efficiency tax deduction enables building owners to claim a tax deduction for installing qualifying systems in their buildings.
Found within IRS Notice 2008-40, the tax rebate provides a deduction of $.63 for every square foot of a building that has a 15 percent reduction in energy use. The rebate could be higher if greater savings are proven, and a mechanical insulation energy audit can be performed to ensure such savings, he added.
He estimated property owners could save as much as 35 percent of their heating and cooling bills through the proper installation and maintenance of mechanical insulation.
Lastly, Ielmini talked about the importance of fire stop and smoke seal inspections, which can be conducted simultaneously with a mechanical insulation energy audit.
Listen to the entire episode to learn more about these topics.