The Commercial Building Deduction encourages companies to “go green” to save money on their utility bills and tax returns. Commercial building owners can take up to $1.80 per square foot deduction if they install property that results in energy and power cost reductions. These installations must be part of the building’s heating, ventilation, cooling, hot water systems, interior lighting systems, or building envelope.

What is the deduction?

Maximum Deduction – $1.80 per square foot = 50% reduction in total annual energy and power costs not to exceed the amount equal to the cost of energy efficient commercial property placed in service during the taxable year.

Partial Deduction – $0.60 per square foot / per system for reduction of energy consumption through building envelope, HVAC, and Lighting

What types of buildings are eligible?

The following commercial building types may be eligible for the 179D deduction:

  • Retail buildings
  • Office buildings
  • Industrial buildings
  • Warehouses

What about designers?

Eligible designers include architects, engineers, contractors, environmental consultants or energy services providers who have worked on energy-efficient projects. These projects could include:

  • Schools & State Universities
  • Libraries & Post Offices
  • Government Offices & Courthouses
  • Airports & Transportation Facilities
  • Military bases

How do I know if my project/building is eligible?

Complete the form below to find out if your project or building qualifies!

Find out if you qualify for the 179D tax deduction


Note:  Please do not click the send button more than once.  Submission may take a moment to process depending on your connection speed.  Once complete, you will be directed to a page to confirm the success of your submission.
How may we help you?


Accounting News