179D Tax Deduction
Unlock Up To $5.81 Per Square Foot in Energy Tax Deductions
Maximize your tax benefits while improving energy efficiency in commercial buildings.
What is Section 179D?
Section 179D is a federal tax incentive that rewards commercial building owners and designers for energy-efficient building improvements. It provides substantial tax deductions—up to $5.81 per square foot—for installing qualifying energy-efficient lighting, HVAC, and building envelope systems that reduce energy consumption compared to industry standards.
Claim up to $5.81 per square foot in immediate tax deductions, potentially saving hundreds of thousands of dollars on larger properties.
The tax deduction significantly improves the return on investment for energy upgrades, often shortening payback periods by years.
Energy-efficient improvements reduce operating costs and increase property marketability, creating both immediate tax benefits and long-term value.
Who Can Claim the Deduction?
The 179D tax deduction is available to those who own or design energy-efficient commercial buildings. The 2022 Inflation Reduction Act expanded eligibility to include tax-exempt organizations who can allocate the deduction to the primary designers of qualifying systems.
Commercial Building Owners
Property owners who implement qualifying energy-efficient systems in their buildings.
- Office buildings
- Retail spaces
- Industrial facilities
Tax-Exempt Building Owners
Government, non-profit, religious, and tribal organizations can allocate deductions to their building designers.
- Government buildings
- Educational institutions
- Religious organizations
Architects & Engineers
Designers of energy-efficient systems for government, non-profit, religious, or tribal buildings can receive allocated deductions.
- Architectural firms
- Engineering consultants
- Energy efficiency specialists
Design-Build Contractors
Companies that both design and construct energy-efficient building systems for qualifying tax-exempt entities.
- Construction companies
- Design-build firms
- Energy retrofit specialists
Ready to Maximize Your Tax Deductions?
Our specialized calculators and tools help you determine your potential tax benefits and guide you through the qualification process.