179D Deduction

For Green Commercial Buildings

Created to encourage commercial building owners to construct or retrofit buildings for green building incentives, IRS Section 179D is often misunderstood. The underutilized 179D deduction (also called the EPAct deduction) covers part or all of the costs to include energy-efficiency measures in one or more of the following categories:

  • Interior lighting
  • Heating, cooling, ventilation and hot water systems
  • Building envelope (or enclosure)

The 179D deduction covers green building incentives for government, commercial and industrial buildings, garage structures and four-story or higher multifamily residential buildings (including dormitories).

While the 179D deduction expired on December 31, 2013, you may still claim for 2013 and retroactively for open tax years. With a deduction of up to $1.80 per square foot, 179D green building incentive has the potential to provide you with significant savings on current and past tax returns.

Who Qualifies For The 179D Deduction?

  • Owners of newly constructed or renovated energy-efficient commercial or multifamily properties
  • Government agencies may elect to assign tax benefits to architects, engineers, energy-services companies (ESCOs) and designers of new or retrofitted energy-efficient government building projects

What Does The 179D Deduction Require?

Your building’s performance must meet certain IRS-specified energy-savings levels, as verified using IRS-approved software and certified by an independent licensed contractor or engineer.

How CTI Helps You Receive The 179D Deduction

We offer a complete turnkey solution – verification, certification and documentation – to building owners and prime contractors, architects, engineers and other service providers who want to take advantage of this significant tax deduction.

Ready to discover the green building incentives that are available to your business? Click here to connect with a Tax Navigator at CTI and receive a free, 30-minute consultation.

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