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Federal 179D Commercial Buildings Energy Efficiency Deduction

Internal Revenue Service (IRS)FED-179D
Max per Applicant

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

United States

About This Program

Section 179D allows commercial building owners and designers to claim a tax deduction of up to $5.00 per square foot for energy-efficient improvements to lighting, HVAC, and building envelope. The IRA expanded 179D to include more buildings and higher deductions.

Key Requirements & Eligibility

  • 1Commercial building placed in service after 2022
  • 2Energy reduction of 25–50%+ compared to ASHRAE baseline
  • 3Deduction: $0.50–$5.00/sq ft depending on efficiency level
  • 4Prevailing wage bonus for higher deduction tiers
  • 5Designers of government buildings can now claim the deduction

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Apply or Learn More

Visit the official page to review full eligibility requirements and apply.

Official Source
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Applicable Industries

Real EstateBuilding ElectrificationConstructionEnergy Management
Official Source