Energy-Efficient Buildings: The 179D Energy Tax Deduction - NOW A PERMANENT TAX BENEFIT

Tax Point Advisors’ National Expertise and Local Touch uncovers more energy-efficiency tax deductions for your building.

Does your business invest in an energy-efficient building system? If so, you could benefit from a valuable tax deduction.

The 179D tax deduction, created by The Energy Policy Act of 2005, is intended to reduce the initial cost of investing in energy-efficient building systems. Today, most building code requirements call for much higher energy efficiency standards, so there is a good chance new construction projects will qualify.

Who Qualifies?

  • Building owners and lessees who make or have made energy-efficient improvement to their commercial buildings
  • For Buildings placed in service in 2022 or earlier Architects, engineers and contractors engaged in the design work of federal, state or local government-owned buildings (universities, schools, airport, military)
  • For Buildings placed in service after 2022 Architects, engineers and contractors engaged in the design work of federal, state or local government-owned buildings (universities, schools, airport, military) as well as tax-exempt building owners, including Charitable organizations, Religious institutions, Private schools and colleges, Non-profit hospitals, Private museums, Tribal governments and any other organization falling under §501(c) to also allocate the §179D Tax Deduction to them in addition to government-owned buildings

To qualify for the 179D deduction, the architect, engineer, contractor or designer, all of whom can go back three years to receive the benefit, must get a letter allocating the tax benefit from the government agency or tax exempt entity that owns the building. Additionally, all 179D projects require an independent certification, which includes modeling and a site visit by a licensed engineer.Request a free assessment to determine if you qualify for energy-efficient tax deductions.

What Qualifies?

Qualifying businesses can receive up to $1.80 per square foot in deductions for eligible projects placed into service any time from 2006 – 2022 and up to $5.00 per square foot for buildings placed in service in 2023 or later years.  This includes energy improvements covering lighting, HVAC and building envelope projects.   The standards to qualify and the amount of the available deduction available vary depending on the placed in service date and the project fact pattern.  Tax Point Advisors will provide a complimentary engineering and tax analysis to determine if this benefit can apply to your property and, if so, to provide the required certifications and other assistance to claim the benefit in accordance with IRS regulations.  

Tax Point Advisors offers a more cost-effective and hands-on approach to 179D studies than many of our competitors:

  • Our team of licensed professional engineers has assisted hundreds of companies across the U.S. to successfully claim tax benefits for their energy efficiency projects
  • Tax Point Advisors has both the accounting and engineering talent to support these applications and will provide professional service and support throughout the entire process

To learn more about the 179D tax deduction from the experts at Tax Point Advisors, simply fill out the form on this page and a member of our team will be in touch with you. Or, you may call us at (800) 260-4138 nationwide.

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