Unlock Up To $5.65 Per Square Foot in Energy Tax Deductions
Qualify for significant tax deductions by improving your building’s energy efficiency. Section 179D offers up to $5.65 per square foot for commercial properties that meet federal energy standards through enhanced lighting, HVAC, or building envelope systems.
Maximum Tax Benefit
Up to $5.65 per square feet in immediate tax deductions for qualifying buildings
Retroactive Claims
Claim benefits for buildings placed in service since 2006 without amending returns
Multiple Building Systems
Qualify through improvements to lighting, HVAC, or building envelope
No Project Size Limit
Available for both new construction and renovations of any scale
How does the Section 179D Deduction Process Work?
1
Preliminary Analysis
Free Building Assessment
Our team evaluates your building’s specifications, energy systems, and design documentation to determine qualification potential. We provide a preliminary estimate of tax deductions based on your property’s square footage and energy-efficient improvements.
2
Engineering Modeling
Engineering Certification
Our engineers conduct detailed energy modeling using IRS-approved software to verify your building meets federal energy reduction targets. We analyze lighting, HVAC, and building envelope systems to document energy performance improvements.
3
Implementation
Tax Benefits Secured
We deliver a comprehensive certification package including energy analysis results, supporting calculations, and required IRS documentation. This enables you and your tax professional to claim the maximum eligible deduction for your property.
FAQs
Learn More About 179D Deductions
The 179D tax deduction is an incentive for designing energy-efficient commercial buildings. Building owners can claim a tax deduction for installing qualifying energy-efficient systems.
Qualifying buildings include commercial buildings and multi-family residential buildings four stories or higher. This includes offices, retail spaces, industrial buildings, warehouses, and apartment complexes.
The deduction applies to three types of systems:
- Interior lighting
- Building envelope (roof, walls, windows, doors)
- Heating, cooling, ventilation, and hot water systems
The deduction can be up to $5 per square foot for buildings that achieve a 50% reduction in energy costs compared to a reference building. Partial deductions of $0.60 per square foot are available for each qualifying system.
Who can claim the 179d deduction?
The deduction can be claimed by building owners, tenants, or designers of government-owned buildings.
Can the 179d deduction be claimed for retrofits or renovations?
Yes, the deduction can be claimed for both new construction and renovations of existing buildings.
What documentation is needed to claim the 179D deduction?
You’ll need certification from a qualified individual (like a licensed engineer or contractor) that the required energy savings have been achieved. This typically involves energy modeling software to demonstrate the energy cost reductions.
How long has the 179d deduction been available?
The 179D deduction was first enacted in 2005 and has been extended and modified several times. It was made permanent in 2020 and expanded in 2022 under the Inflation Reduction Act.