Facilities and Fleet Department
Reference: Resolution Allocating Potential Deductions Pursuant to Section 179D of the Internal Revenue Code for Energy Efficient Building Design to D2C Architects, Inc. for the Michael Woodruff Municipal Service Center
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Karen Borkowski Surine, Assistant City Manager
Date Prepared: 9/23/2026
PURPOSE
To consider adopting a Resolution allowing D2C Architects, Inc. to pursue potential tax deductions under Section179D of the Internal Revenue Code for energy efficient building design of the Michael Woodruff Municipal Service Center (MSC).
BACKGROUND
Section 179D of the Internal Revenue Code allows tax-exempt building owners, such as the City of Brighton, to allocate energy efficient tax deductions to the architects who contributed to the project and its qualifying building systems. As a tax-exempt entity, the city cannot take a deduction, however the City is permitted to allocate the deduction to our project architect. The allocation does not create a tax liability or financial obligation nor does if affect the project cost, funding or ownership. It simply documents that qualifying energy efficient systems were designed and placed into service at the MSC (lighting, HVAC, building envelope) and allows a site review and inspection for IRS compliance purposes. The inspection takes 60 minutes or less and there is no cost for the City. The inspection takes 60 minutes or less.
FINANCIAL IMPACT
There is no cost to the City.
STAFF RECOMMENDATION
Staff recommends approval of the attached resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve the attached resolution.
Deny the attached resolution.
ATTACHMENTS
Resolution