179D Energy Efficiency Deduction
Claim a federal deduction for energy-efficient commercial building work; on tax-exempt owners' projects it may be allocated to the project's designers.
Are you a provider?
What it’s worth
A per-square-foot deduction on a qualifying building can translate into substantial tax savings, especially at scale.
How often you need it
Per building and tax year; new construction, renovations, and retrofits each qualify as they are placed in service.
What you provide
Provide building details, square footage, and project drawings or specs; the provider arranges the energy model and site inspection.
Risks to know
The deduction depends on a certified energy model; prevailing-wage shortfalls reduce the rate; designer allocations must come from the building owner.When it matters: At certification and filing; wage documentation on audit.
Helpful reading
- The signed allocation letter from the tax-exempt building owner, if claiming as the designer
- Construction drawings or specifications for the envelope, HVAC, or lighting work
- Certified payroll or wage records, where prevailing wage applies
- The energy model output, if one was produced
- Placed-in-service documentation for each building
Ready to start?
Answer a short set of questions and send it anonymously.
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