Section 179D enables commercial building owners to claim a tax deduction of up to $5 per square foot for improving the energy efficiency of new and existing buildings. To qualify, a building must meet or exceed key energy reduction requirements and ASHRAE standards.
179D Tax Deduction offers substantial benefits
Taxpayers and/or building owners that invest in new construction or in improvements to existing buildings are eligible. Primary designers – including architects, engineers, green building consultants, and contractors – of qualifying energy efficiency measures in buildings may also claim the deduction if they receive an allocation from their work completed on government agency properties, non-profits and Native American tribes.
Improvements must reduce energy use by making investments in any of the following categories:
- Building envelope
- HVAC
- Interior lighting systems
There are different ways to pursue a deduction and all require comparison to the ASHRAE Standards and certification by a qualified individual.
Learn more about 179D
Download the 179D Deduction Guide to learn more about how you can claim 179D and how we can help you.