The 179D Commercial Buildings Energy Efficiency Tax Deduction allows building owners to claim a tax deduction on eligible lighting, building envelope, or HVAC projects. Eligible projects can qualify for up to $1.80 per square foot. The 179D acts as an accelerated depreciation towards the overall cost of the project.
The accelerated depreciation works best for plant, property and equipment that are otherwise depreciated over a longer time horizon, such as a 15- to 30-year depreciation schedule. In order to qualify, the project must reduce the building’s total energy when compared to ASHRAE (American Society of Heating, Refrigeration, and Air Conditioning Engineers) Standard 90.1-2007. We can assist in evaluating the opportunity and completing the necessary paperwork.