Between 40,000 to 77,000 New Jobs to be Created Annually with Renewal of 179D Tax Deduction
Louisville, KY -- (SBWIRE) -- 05/24/2017 -- A study conducted by Regional Economic Models Inc. (REMI), funded in part by BLUE Energy Group, indicates that up to 77,000 new design and construction jobs would be created annually over the next decade – including nearly $7.4 billion more in annual GDP – if Congress and the Trump Administration continue an important energy efficiency tax policy in the 179D tax deduction.
Section 179D of the tax code – which is also known as the Energy Efficient Commercial Buildings Deduction – allows qualifying building owners and businesses to receive up to a $1.80 per square foot tax deduction for certain energy efficient improvements placed into service during all open tax years. Originally, it was passed by Congress as part of the Energy Policy Act of 2005 in direct response to broader energy usage and independence concerns.
The Regional Economic Models Inc. (REMI) study documents job creation and GDP growth under three scenarios that continue energy efficiency tax policies:
- Modernizing Section 179D, including increasing the deduction to $3 per square foot and making certain other reforms to strengthen it, generates significant job creation - on average 76,529 per year during its first decade.
- A long-term extension of the deduction at its current $1.80 per square foot level creates an average of almost 41,000 jobs per year over 10 years.
- A long-term extension at $1.80 per square foot, extension of the deduction to hospitals, schools, and other non-profits and to tribal community facilities, and an increase in the energy efficiency requirements creates almost 40,000 jobs per year over the next decade.
According to the study, the economic growth and job creation generated by a modernized Section 179D would result in a GDP return of ten to one when considering the cost of the tax policy.
"Looking at the continuance of 179D from the perspective of not only businesses but also workers seeking employment and an overall bolstering effect to the economy, this tax code is a crucial element of the bigger picture of the progress of our country," shared BLUE Energy Group Owner Josh Howes. "Our company – standing alongside many other organizations – is proud to be a part of having a positive impact on the economic landscape and will continue to support 179D and the widespread benefits and positive results of its existence."
The study was co-funded by BLUE Energy Group along with the American Institute of Architects (AIA), Alliant Group LP, Ameresco, Concord Energy Strategies, Energy Tax Savers, Energy Systems Group, National Electrical Manufacturers Association (NEMA), the Natural Resources Defense Council (NRDC) and the United States Green Building Council (USGBC).
To learn more about BLUE Energy Group, visit their website today.
About BLUE Energy Group
BLUE Energy Group is a MEP Design Engineering firm that works with clients across the United States to help them take advantage of the 179D tax deductions granted to building owners and designers of energy efficient systems. BLUE Energy's clients include architects, engineers, energy service companies (ESCOs), accounting firms, and building owners in need of MEP design services or who seek to take advantage of the tax benefits currently allowed under Section 179D of the Internal Revenue Code, related to energy efficient buildings.