179D Deduction: How to Earn $1.80 Per Square Foot From Your Properties

Apply for the federal 179D tax credit and earn immediate cash flow.

The 179D tax incentive rewards taxpayers for reducing their carbon footprint for all commercial properties owned. This includes new construction, as well as improvements to the building that provide an overall reduction in energy and power costs. The deduction was originally enacted on January 1, 2006, and is currently available for all qualified parties for the 2019 tax year.

Commercial property owners are the biggest group of applicants, but there are other qualified parties that can take advantage of the 179D tax deduction including building designers and architects.

What are the benefits of the 179D deduction?

For buildings that reduce the energy consumption by at least 50%, a deduction can be rewarded to the taxpayers at the following rates:

  • Up to $1.80 per square foot for commercial buildings that reduce HVAC, envelope and lighting costs.
  • $0.60/sf savings on heating, cooling, ventilation and hot water; $0.60/sf savings on lighting, either in the building or as part of the parking garage; and
  • $0.60/sf savings on building envelope systems, such as windows, doors, roofs and insulation.

What is the first step to claiming the 179D deduction?

179D is an engineering-based tax incentive, and therefore the process requires working closely with national tax experts that can walk you through each step of the way. A specialty tax engineer will create a detailed analysis using Department of Energy approved software. From there, your tax specialists will determine your eligibility and create a thorough report of your energy and financial benefits.

National Tax Group tax experts are well versed in the 179D tax deduction, and can provide you with the guidance you need to ensure your maximum tax benefit. Call us at (561) 257-3436 to schedule your free analysis.

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