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IRA Section 179D Commercial Buildings Energy Efficiency Deduction

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

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

United States

About This Program

Allows businesses to deduct up to $5.65/sq ft for commercial buildings achieving significant energy savings through improvements to HVAC, lighting, and building envelope systems. IRA expanded the deduction and allowed non-profits and government to allocate it.

Key Requirements & Eligibility

  • 1Deduction of $0.50โ€“$5.65 per sq ft based on % energy savings over ASHRAE baseline
  • 2Full $5.65/sq ft requires 50%+ energy savings and meeting prevailing wage requirements
  • 3Eligible improvements: interior lighting, HVAC/hot water, building envelope
  • 4Tax-exempt entities (nonprofits, gov) can now allocate deduction to the designer of record
  • 5Energy model must be certified by qualified third party using IRS-approved software

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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 EstateConstructionEnergy ManagementGovernment & Nonprofit
Official Source