Tax CreditUnited StatesActiveVerified

IRA Section 179D Commercial Buildings Energy Efficiency Deduction

Internal Revenue Service (IRS)IRA-179D

Max per Applicant

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

United States

About This Program

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.

Key Requirements & Eligibility

1Deduction of $0.50–$5.65 per sq ft based on % energy savings over ASHRAE baseline
2Full $5.65/sq ft requires 50%+ energy savings and meeting prevailing wage requirements
3Eligible improvements: interior lighting, HVAC/hot water, building envelope
4Tax-exempt entities (nonprofits, gov) can now allocate deduction to the designer of record
5Energy model must be certified by qualified third party using IRS-approved software

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Apply or Learn More

Visit the official agency page to view requirements and apply.

Official Source

via irs.gov

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Applicable Industries

Real EstateConstructionEnergy ManagementGovernment & Nonprofit

Provenance

Sourcewww.irs.gov

ConfidenceMEDIUM

First seenApr 30, 2026

Last seenApr 30, 2026

Methodology·Report an error

Official Source