SEC179D - Energy Efficient Commercial Building Tax Deduction

Understanding the 179D Tax Deduction: Empowering Energy Efficiency

The 179D Tax Deduction is an initiative that encourages energy efficiency in building design and construction. This significant financial incentive rewards those who strive to reduce energy consumption in both new builds and renovated structures.

This deduction allows building owners and designers to claim up to $5.00 per square foot for energy-efficient structures. To qualify, these buildings should meet specific energy reduction criteria and adhere to ASHRAE standards.

Eligibility for the 179D Deduction

Architects, engineers, and design-build contractors working on new or renovated government-owned structures can claim this deduction. These structures include:

  • K-12 Schools

  • Military Bases

  • Prisons

  • Courthouses

  • Non-profit Organizations

  • Hospitals

  • Universities

  • Libraries

  • City Parks

  • Airports

  • Tribal Lands

Embracing Energy Efficiency: Qualifying Improvements

Investments geared towards reducing energy use in new constructions or existing buildings can qualify for the 179D deduction. The eligible improvements that align with ASHRAE standards include:

  • Building envelope improvements

  • HVAC system enhancements

  • Interior lighting solutions

Exploring the 179D Study Process

To qualify for the 179D tax deduction, a two-part process is essential:

  • Evaluation: This phase involves a detailed analysis of the building to determine if it qualifies for the 179D tax deduction. An authorized third party conducts an on-site inspection, comparing the building to a reference model for energy efficiency.

  • Documentation: Two primary documents are required - allocation letters confirming property ownership and energy efficiency, and a report certifying the building's eligibility for 179D, accompanied by an energy model demonstrating energy reduction.

 We Can Help: Maximizing Your 179D Deduction

Our service helps determine your eligibility, ensuring everything is accurately allocated and maximizing your deduction without upfront fees. We offer a risk-free preliminary assessment conducted by licensed engineers who pay attention to every detail of the process. We also provide a state-of-the-art software interface that aligns with the US Department of Energy's modeling software used by the IRS.


Ready to get started? Schedule a free consultation with our team to learn more. We'll discuss your eligibility and help estimate your potential tax benefit. Let's work together to make your buildings more energy-efficient and reward you for your commitment to a greener future.

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