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179D Tax Deduction
Maximize Your 179D Tax Deduction
Unlock significant savings with the 179D tax deduction for energy-efficient commercial buildings. Claim up to $5 per square foot and reduce your tax liability while promoting sustainability. Our expert team will guide you through the process to ensure you maximize your benefits.
Unlock Maximum Value from Your Energy-Efficient Investments
The 179D tax deduction offers substantial financial benefits for businesses investing in energy-efficient building improvements. Our comprehensive approach ensures you capture every available dollar while maintaining full compliance with IRS requirements. Here’s how we deliver measurable results for your organization:
Immediate Tax Savings That Boost Cash Flow
Claim up to $5 per square foot in immediate tax deductions, providing substantial upfront savings rather than waiting for depreciation over time.
Expert Guidance That Ensures Compliance
Licensed engineers and energy modeling specialists handle all technical requirements, certifications, and documentation to guarantee IRS compliance.
Risk-Free Assessment That Protects Your Investment
No-cost preliminary evaluation identifies qualifying projects and potential savings before you commit to any expenses or obligations.
Comprehensive Documentation That Withstands Scrutiny
Court-validated study process and thorough reporting provide bulletproof documentation that stands up to IRS examination and audit.
Streamlined Process That Saves Time
Three-step methodology handles everything from project identification to final certification, minimizing disruption to your business operations.
Ongoing Support That Maximizes Benefits
Established relationships with 8000+ government entities and continuous guidance ensure you capture every available dollar of deduction.
What is the 179D Tax Deduction?
The 179D tax deduction, also known as the Energy Efficient Commercial Buildings Deduction, incentivizes both commercial building owners and designers of public buildings to implement energy-efficient technologies. This incentive has been in effect since 2006 and was made permanent in 2020. With enhancements from the Inflation Reduction Act, the deduction now offers even greater financial benefits.
This deduction targets improvements in HVAC systems, lighting, and building envelopes, encouraging both commercial building owners and designers of public buildings to adopt sustainable practices. Eligible projects, including those involving government-owned buildings, non-profits, Indian tribal governments, or Alaska Native organizations, can receive deductions up to $5 per square foot. To qualify for the full deduction, projects must meet specific prevailing wage and apprenticeship requirements.
By taking advantage of the 179D deduction, eligible businesses can significantly reduce tax liabilities while contributing to a more sustainable future. Our expert team is here to guide you through the process and help maximize your benefits.
Who Can Take Advantage of Section 179D?
Under the current law, a variety of entities can benefit from the 179D deduction. Commercial building owners who implement energy-efficient improvements are eligible for this deduction. Additionally, designers of buildings owned by governmental entities, such as architects and engineering firms, can also benefit.
- Architects
- Engineers
- Design-build contractors
Who Can Provide a 179D Allocation Letter?
- Governmental entities
- Not-for-profit organizations
- Indian tribal governments and Alaska Native corporations
Tax-exempt organizations can negotiate the allocation of the 179D deduction to the designer of the property, offering substantial savings for new projects. This is particularly beneficial for groups with significant real estate holdings, such as universities, hospitals, and religious organizations.
What Improvements Qualify for the 179D Tax Deduction?
Taxpayers who invest in designing new buildings, invest in constructing new buildings, or improve existing buildings are eligible for the 179D deduction. These investments must be aimed at reducing energy use. The improvements eligible under ASHRAE standards include:
- Building envelope improvements
- HVAC improvements
Interior lighting solutions
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Understanding the 179D Tax Deduction: Eligibility, Requirements, and Qualifying Improvements
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Projects that Qualify
Religious Organizations
Military Bases
Courthouses
Non-profits
Hospitals
Universities
Libraries
City Parks
Airport
Tribal Lands
A Guide on How You Can Claim The 179D Tax Deduction
The Consolidated Appropriations Act of 2021 made the Section 179D Energy Efficient Building Deduction permanent and gave business owners and government contractors a tax incentive for energy-efficient improvements to commercial and government buildings.
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