179D Energy Efficient Tax Deduction

Go green, save green

179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.

Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.

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Here Are Some of Our Clients' Success Stories:

We are excited to announce that after years of legislation 179D & 45L have been extended

How Do You Qualify Based on Your Industry?

The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.

Commercial Building Owners
Architects & Designers

Qualifying Energy-Savings Are All Around You

It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.

EPAct 179D studies are applicable for the following:

  • New construction of commercial buildings
  • Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
  • LEED-certified buildings
  • Green/energy-efficient buildings
  • Residential apartment buildings
  • Public buildings

Section 179D: A timeline

Here’s a detailed timeline of all the IRS notices released impacting Section 179D:


Public Law No: 115-123

Bipartisan Budget Act of 2018; Extends 179D through the end of 2017.


Memorandum AM-2018-005

Addresses Eligibility for Allocation of the Deduction for Energy Efficient Commercial Building Property under Section 179D(d)(4).


2023-01: Announcement

Announcement Updating the Reference Standard 90.1 for Section 179D allowing the use of ASHRAE 90.1 through 2026

Other essential resources on Section 179D


What Our Clients Are Saying

80,000 X $1.80 = $144,000​

179D Qualification Requirements

179D Qualification Requirements

Properties Placed in Service 2023-2032
Project Tier Bonus Requirements Energy Savings Base Deduction Max Deduction
Base Tier None 25-50% $0.50/sqft $1.00/sqft
Bonus Tier Prevailing Wage and Apprenticeship Program 25-50% $2.50/sqft $5.00/sqft
Properties Placed in Service 2006-2022
Qualifying Components Estimated Tax Deduction
Before 2021 2021 2022
Fully Qualified Property $1.80/sqft $1.82/sqft $1.88/sqft
Partially Qualified Property Envelope $0.60/sqft $0.61/sqft $0.63/sqft

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