FederalTax DeductionCommercial

Energy-Efficient Commercial Building Deduction (179D)

Amount

Up to $5.00/sq ft

Maximum

$5.00 per square foot

Expiration

Made permanent by IRA

Overview

Tax deduction for energy-efficient commercial buildings. $0.50-$5.00 per sq ft based on energy savings (25-50%+ reduction). Prevailing wage and apprenticeship requirements for max amount.

Eligibility

Commercial buildings, new or retrofit. Must achieve 25%+ energy savings vs. ASHRAE 90.1 reference. Tax-exempt entities can allocate to designers.

How to Claim

Energy modeling and certification by qualified professional. Claimed on business tax return.

What It Covers

HVAC, lighting, building envelope upgrades

Income Limits

None

IRS Form

File Business tax return with your federal tax return to claim this credit.

Official Source

https://www.irs.gov/credits-deductions/energy-efficient-commercial-buildings-deduction

Frequently Asked Questions

How much is the Energy-Efficient Commercial Building Deduction (179D) worth?

The Energy-Efficient Commercial Building Deduction (179D) provides Up to $5.00/sq ft (up to $5.00 per square foot) as a tax deduction. This is a federal-level program in the Commercial category. It applies nationwide to qualifying households.

Who is eligible for the Energy-Efficient Commercial Building Deduction (179D)?

Eligibility: Commercial buildings, new or retrofit. Must achieve 25%+ energy savings vs. ASHRAE 90.1 reference. Tax-exempt entities can allocate to designers.. This program applies to: Building owners, designers (tax-exempt allocation).

Is the Energy-Efficient Commercial Building Deduction (179D) a tax credit or a rebate?

The Energy-Efficient Commercial Building Deduction (179D) is classified as a Tax Deduction. As a tax deduction, the specific mechanism depends on the administering agency.

How do I claim the Energy-Efficient Commercial Building Deduction (179D)?

Energy modeling and certification by qualified professional. Claimed on business tax return.

When does the Energy-Efficient Commercial Building Deduction (179D) expire?

This program is currently set to expire: Made permanent by IRA.

Who is eligible for the Energy-Efficient Commercial Building Deduction (179D)?

Commercial buildings, new or retrofit. Must achieve 25%+ energy savings vs. ASHRAE 90.1 reference. Tax-exempt entities can allocate to designers.

How much is the Energy-Efficient Commercial Building Deduction (179D) worth?

The Energy-Efficient Commercial Building Deduction (179D) provides Up to $5.00/sq ft as a rebate. This can be combined with state and utility incentives for additional savings.

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RebatePeek Editorial TeamData Specialists

The RebatePeek editorial team aggregates and verifies programs data from DSIRE, IRS, DOE, EIA & State Energy Offices. Every statistic on this site is cross-referenced against the official source before publication, with quarterly re-verification cycles.

✓ Sourced from DSIRE, IRS, DOE, EIA & State Energy Offices✓ Quarterly review✓ No paid placements

Read our full methodology or contact us with corrections.

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