Section 179D Tax Deduction: Who Qualifies and What You Get
Commercial building owners can claim a tax deduction for making energy-efficient upgrades to lighting, HVAC, and building envelopes.
This tax provision allows owners of commercial or multifamily buildings to claim a deduction for making certain energy-efficient improvements.
Who it's for
This is designed for owners of commercial buildings or multifamily housing units who are making upgrades to improve energy efficiency.
What you get
You can receive a tax deduction for costs related to energy-efficient upgrades. This specifically covers improvements made to your building's lighting, HVAC (heating, ventilation, and air conditioning) systems, and the building envelope, which refers to the physical separator between the conditioned and unconditioned environment of a building.
What it costs you
To claim this, you cannot simply self-certify. You must pay for an energy model to be created by a certified professional to prove the efficiency of the upgrades.
The catch to know
The total amount of the deduction you receive is not fixed; it is directly tied to the specific percentage of energy savings you achieve through your upgrades.
How to apply
- Consult with a certified professional to perform energy modeling on your building.
- Implement the energy-efficient upgrades to your lighting, HVAC, or building envelope.
- Work with a tax professional to calculate your savings and include the deduction in your filings.