Unlock significant tax deductions for energy-efficient commercial buildings. With up to $5.65 per square foot available, §179D rewards projects that reduce energy consumption and meet compliance standards.
.jpg)
It applies to both new construction and qualifying upgrades that reduce energy usage across key building systems. Eligible improvements include HVAC, lighting, and building envelope upgrades, with higher deductions available for projects that meet prevailing wage and apprenticeship requirements.
Proven Impact, Real Savings
When constructed with prevailing wage and apprenticeship requirements, the §179D Deduction starts at $2.50 per square foot when compared to the ASHRAE Reference Standard 90.1 that was in effect for four years prior to the in-service date of the building.
If prevailing wage requirements are not met, the §179D Deduction is $0.50 per square foot. Each additional percentage of energy reduction will increase the deduction by $0.02 per square foot, up to $1.00 per square foot.
Prevailing Wage Requirements to Maximize the §179D Deduction for 2023 Projects and Onward. Projects started prior to January 30, 2023, do not need to meet prevailing wage rates to qualify for the $2.50 to $5.00 higher tier of §179D Deductions.
The §179D Deduction can be taken every three tax years when the building is placed in service in 2023 and thereafter (four in some situations)
Architects, engineers, and designers may claim the deduction for work performed on tax-exempt buildings.
Our team of engineers and tax professionals will perform free assessments to
prequalify your project. Our §179D Deduction service includes:
These rules apply to buildings placed in service between 2006 and 2022, with different qualification
and deduction structures compared to current §179D guidelines.
The §179D Deduction allows building owners to claim up to $1.80 per square foot. In the case of a taxable year beginning after 2020, the $1.80 per square foot will be adjusted by inflation ($1.82 for 2021 and $1.88 for 2022). To qualify, newly constructed or renovated buildings must meet or exceed the ASHRAE standards for HVAC, building envelope and interior lighting.
Projects started prior to January 30, 2023, do not need to meet prevailing wage rates to qualify for the $2.50 to $5.00 higher tier of §179D Deductions. Any construction or installation started on or after January 30, 2023, must meet prevailing wage rates to qualify for the $2.50 to $5.00 tier of deductions.
• K-12 Schools, higher education, and libraries.
• Municipal buildings (police, fire stations, courthouses, and more).
• Public offices, and parking garages, airport terminals.
Collaboration is at the core of how we work. We believe the best outcomes come from combining expertise, aligning perspectives, and working toward a shared goal.
By partnering closely with our clients and trusted specialists, we turn complex challenges into clear, actionable solutions, delivering results that wouldn’t be possible in isolation.
We offer a complimentary estimate before you commit.
We collaborate with your CPA and advisory teams.
Every solution is tailored to your business structure.