Green Energy Incentive
Maximize Tax Savings with the 179D Tax Deduction for Commercial Structures
The 179D Tax Deduction presents a lucrative opportunity for building owners, architects, contractors, and designers to benefit from installing energy-efficient systems in commercial structures. Qualifying entities can receive up to $1.80 per square foot deduction for implementing energy-saving measures such as efficient lighting, heating, cooling systems, and improvements to the building envelope.
Promoting Green Building Initiatives
In recent years, Congress has underscored the importance of green building and energy independence initiatives. This emphasis has led to the extension of the 179D Tax Deduction through the Consolidated Appropriations Act of 2021. The deduction applies to residences sold or leased on or before December 31, 2021, incentivizing the construction of energy-efficient buildings and encouraging owners to make energy-saving improvements to existing structures.
Who Can Benefit?
The 179D Energy Efficient Commercial Building Deduction serves as a federal tax incentive aimed at promoting the construction of energy-efficient buildings and reducing energy costs. In addition to building owners, architects, engineers, contractors, environmental consultants, and energy services providers may also be eligible for the incentive, particularly on public projects.
Understanding the Incentive
The 179D Tax Deduction is commonly known as the EPAct Deduction, named after the Energy Policy Act of 2005, which established it. It is also referred to as the §179D Deduction, reflecting the Internal Revenue Code section that codified the incentive.
For More Information
To learn more about how you can capitalize on the 179D Tax Deduction and other Green Energy Incentives, please contact us. Our team of experts is ready to assist you in navigating the intricacies of these incentives and maximizing your tax savings while promoting sustainability.