Time-Sensitive Opportunity
A Federal Tax Incentive for Energy-Efficient Commercial Buildings
IRC Section 179D is a federal tax incentive designed to reward owners of energy-efficient commercial buildings. The deduction can provide significant tax savings for qualifying improvements to a building's lighting, HVAC and hot water systems, and building envelope. Property owners who have constructed, renovated, or upgraded commercial, industrial, multifamily, educational, healthcare, or other qualifying facilities may be eligible to claim a deduction based on the energy performance of their building. For many owners, Section 179D has been one of the most valuable incentives available for reducing the cost of energy-efficient investments.
Although the recently enacted H.R. 1 legislation terminates Section 179D for projects that begin construction after June 30, 2026, opportunities still remain. Buildings with qualifying construction that began before the deadline may continue to be eligible for the deduction, even if the project is completed and the deduction is claimed after June 30, 2026. In addition, many property owners may qualify based on past projects and improvements that have not yet been evaluated for 179D eligibility.
EIA helps building owners identify qualifying properties, perform the required engineering analyses, prepare certification documentation, and maximize available tax benefits before these opportunities expire.