179D Commercial Building

Tax Deduction

Claim Up to $5.00+ Per Square Foot for Energy-Efficient Building Design.

The 179D tax incentive provides a federal deduction for energy-efficient improvements to commercial buildings. This deduction is available to:

  • Property Owners - For energy-efficient HVAC, lighting, and building envelope systems installed in owned buildings.

  • Designers and Contractors - Architects, engineers, and contractors can claim the deduction for their work on qualifying government-owned buildings, including K-12 schools, universities, municipal facilities, federal buildings, and military installations.

Under the Inflation Reduction Act, the deduction has been enhanced and extended through 2032, with increased per-square-foot amounts for projects meeting prevailing wage and apprenticeship requirements.

Qualifying Improvements: HVAC systems, interior lighting, building envelope (roof, walls, insulation, windows, doors).

Key Benefits

  • Immediate tax deduction in the year the property is placed in service.

  • No cap on total deduction amount.

  • Applicable to new construction and substantial renovations.

Our team provides complete energy modeling, certification, and documentation services to ensure full compliance and maximum deduction.

Legacy Group Consulting

Strategic tax incentive consulting for businesses that build, develop, and invest. We specialize in identifying federal and state tax credits that strengthen your financial position - partnering with your CPA to deliver results you can trust.

Core Focus Areas: 
45L Energy Efficient Home Credit

179D Commercial Building Deduction

Cost Segregation

R&D Tax Credits

ERTC

Ready to explore your tax incentive opportunities?

There are significant savings available - many of which go unclaimed each year. Reach out today for a complimentary assessment and discover what you qualify for.

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