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 government projects.

Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $1.80 per square foot for both new and existing buildings. This policy was extended through 2020, which means businesses who qualify have the opportunity to go back and save for 2018 & 2019!

 

 

LIGHTING
60¢

Interior and Parking Garages

(-16 2/3% = $0.60)

HVAC
60¢

Heating, Cooling, Ventilation and Hot Water

(-16 2/3% = $0.60)

ENVELOPE
60¢

Windows, Doors, Roofs and Insulation

(-16 2/3% = $0.60)

How do you qualify based on your industry?

The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms to be able to make their projects more lucrative. This deduction is especially profitable for the types of renovation projects these industries typically work on. To learn more about your industry-specific qualifications, see the resources below: 

Qualifying Energy-Savings Elements Are All Around You

It can be difficult to figure out which 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. As a starting point, here are a few examples of qualifying elements:

  • Hot water systems
  • Building envelope systems
  • Heating, ventilation, and air conditioning (HVAC)
  • Interior lighting systems
  • Insulation in ceilings, walls, floors, and roofs
  • Lighting sensor and controls
Sample Project Size
(Sq. Ft.)
Lighting
($0.60/Sq.Ft.)
HVAC
($0.60/Sq.Ft.)
Building Envelope
($0.60/Sq.Ft.)
Total Max Deduction
($1.80/Sq.Ft.)
50,000 $30,000 $30,000 $30,000 $90,000
100,000 $60,000 $60,000 $60,000 $180,000
250,000 $150,000 $150,000 $150,000 $450,000
500,000 $300,000 $300,000 $300,000 $900,000
1,000,000 $600,000 $600,000 $600,000 $1,800,000

Let Us Do the Hard Work

To keep things simple for you, National Tax Group does all the heavy-lifting for you. Using our expertise, we will: 

  • Perform a free assessment
  • Perform an on-site inspection in the jurisdiction of the qualifying building
  • Get an allocation letter if applicable
  • Execute IRS compliant building energy models
  • Document the process in a report

179D is underutilized by many building and property owners who are unaware that they qualify for the deduction.

Talk to one of our specialists and claim your earned tax deduction. Contact us to learn more. 

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