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Energy & Utilities

§179D Commercial Building Energy Deduction ($5.65/sf)

Deduct up to $5.65/sq ft for energy-efficient commercial buildings (owners + designers).

Overview

§179D (post-IRA): commercial building owners get up to $5.65/sq ft deduction for HVAC/lighting/envelope efficiency improvements meeting ASHRAE thresholds. Designers/architects of GOVERNMENT and non-profit buildings can claim credit allocated from the owner. Prevailing-wage bonus multiplier. Requires certified engineering study.

Best fit
Commercial building ownersArchitects/engineers designing govt buildingsMulti-property portfolios
Estimated impact
$50K–$500K per building deduction

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