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Loophole

§179D Commercial Building Energy Deduction

Up to $5/sqft deduction for energy-efficient commercial improvements.

Overview

Owners (and designers of government buildings) of commercial buildings that meet ASHRAE-based energy targets get an immediate deduction up to $5.00/sqft (post-IRA). Applies to HVAC, lighting, and envelope. Stack with cost segregation for massive first-year deductions.

Best fit
Commercial RE ownersRetrofit projectsArchitects/engineers
Estimated impact
$1-$5/sqft immediate deduction — $500K on 100K sqft

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