The recent expansion of Section 179D benefits represents a significant opportunity for owners making energy saving improvements to their buildings, allowing additional tax deductions to be claimed during the year that these systems are implemented.

Benefits can be earned across three key areas:

  • Interior lighting systems
  • HVAC systems
  • Building envelope
 

By investing in energy-efficient technologies,

building owners can qualify for additional incentives that will:

Accelerate Depreciation

Realize Tax Savings

Expedite Cost Recovery

Lower Project Costs

 
See How Other Customers Have Turned Green Efforts into Green

“I am an extremely cost-conscious and demanding investor. No other firm could have met the level of detail I require and completed such a project within our time frame. I am very happy with CSSI’s performance and the commitment of our representative to see this project completed successfully within an impossible time frame.”

Shane P.
Property and Business Owner

“The bottom line speaks for itself… CSSI saved us over $500,000 in cash. In these economic times, no one in business can afford to let that kind of money slip away.”

Justin P.
Property and Business Owner

 

How Does the Section 179D Evaluation Work?

Step 1: Assess

Get a No-cost Feasibility Assessment

CSSI evaluates your situation to determine whether your property qualifies for 179D tax deductions based on the established energy-efficient criteria and norms.

Step 2: Evaluation

CSSI Thoroughly Reviews Your Plans and Structures

Our team then works to uncover any issues that could prevent you from qualifying for or maximizing your deductions, which may include on-site visits.

Step 3: Report

You Receive a Full Report with Detailed Recommendations

Our strategies will show you how to fully leverage available incentives and provide you with all the documentation required to file for and substantiate your credits.

FAQs

Learn More About 179D Deductions

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.

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.

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.

Who can claim the 179D deduction?

The deduction can be claimed by building owners, tenants, or designers of government-owned buildings.

How much is the 179D deduction worth?

The deduction can be up to $1.80 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.

What energy systems can qualify for the 179D deduction?

The deduction applies to three types of systems:

    • Interior lighting
    • Building envelope (roof, walls, windows, doors)
    • Heating, cooling, ventilation, and hot water systems
    What types of buildings qualify for the 179D deduction?

    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.

    What is the 179D tax deduction?

    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.