Overview of the 179D Deduction: Construction of New Energy Efficient Commercial Buildings

The Inflation Reduction Act drastically expanded the already existing Section 179D - Energy Efficient Commercial Buildings Deduction. The energy savings threshold to qualify for the deduction was reduced from 50% down to 25%, the maximum value of the deduction per square foot increased from $1.80 a square foot to $5 a square foot, and there is an ability to claim the deduction every three or four years during the life cycle of a building. In this guide you will find a brief overview of what Section 179D entails and how a taxpayer or non-profit entity can seek to maximize its potential applications.

Overview of the 179D Deduction: Construction of New Energy Efficient Commercial Buildings