Start Saving With the 179D Tax Deduction

If you own a building or if you are an architect, engineer or contractor working with tax-exempt clients, you may qualify for an energy efficiency deduction. Get the tax savings you deserve from the 179D tax deduction.

How the 179D Deduction Can Benefit You

Section 179D is an energy efficiency tax deduction that incentivizes energy efficient commercial building properties (EECBP). The 179D deduction currently applies to both privately and tax-exempt owned buildings; the Inflation Reduction Act (IRA) enhanced this incentive.

• >> Properties placed in service prior to 1/1/2023: up to $1.88/SF
• >> Properties placed in service between 1/1/2023 and 12/31/2032: up to $5.00/SF

179D Energy Efficiency Tax Deduction Enhancements

Starting in 2023, the following 179D energy tax deduction enhancements apply:

• Base deduction rate starts at $.50/SF for 25% improvement against the applicable baseline standard
• Increases incrementally up to $1.00/SF for 50+% improvement
• Bonus deduction is available for projects meeting certain prevailing wage and apprenticeship requirements (Starting at $2.50/SF and increasing $.10 for each percentage improvement up to $5.00/SF)
• Previous lifetime cap has been modified to a 3-year cap for buildings owned by for-profit entities and a 4-year cap for buildings owned by tax-exempt entities, assuming qualifying energy efficiency improvements have been made.
• 179D Now Available to All Tax-Exempt Entities Beginning 1/1/2023, all tax-exempt entities can allocate the deduction to the “designers” (architects, engineers and contractors who create the technical specifications of the energy efficient commercial building property).

Partner with Eide Bailly to Maximize Your Tax Savings

Eide Bailly is the number one accounting firm in the energy incentives space. We have nationally recognized professional engineers, energy modelers and architects, entirely in-house, with expertise to help you maximize your 179D energy efficiency tax deduction.

“One of the best things about working with Eide Bailly on 179D is that the process was so easy. We give them the building calculations, they do the site visit and then it’s complete.”

Anonymous | Principal Architect