Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
Section 179D allows commercial building owners and designers to claim a tax deduction of up to $5.00 per square foot for energy-efficient improvements to lighting, HVAC, and building envelope. The IRA expanded 179D to include more buildings and higher deductions.
Do I qualify?
Answer the questions below to get an instant self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.Commercial building placed in service after 2022
2.Energy reduction of 25–50%+ compared to ASHRAE baseline
3.Deduction: $0.50–$5.00/sq ft depending on efficiency level
4.Prevailing wage bonus for higher deduction tiers
5.Designers of government buildings can now claim the deduction
IRS · United States
Allows businesses to deduct up to $5.65/sq ft for commercial buildings achieving significant energy savings through improvements to HVAC, lighting, and building envelope systems. IRA expanded the deduction and allowed non-profits and government to allocate it.
LPO · United States
Offers federal loan guarantees for innovative clean energy projects that struggle to access conventional financing. Supports first-of-kind commercial-scale projects in renewable energy, storage, advanced nuclear, and industrial decarbonization.
NYSDEC · New York
Provides transferable tax credits for remediating contaminated brownfield sites and redeveloping them for residential, commercial, or industrial use, with enhanced credits for affordable housing and green buildings.