179D Tax Deduction Texas

Our team of engineers and tax experts will obtain the maximum 179D deductions available in the state of Texas, following IRS guidance. The deduction ranges between $0.60/sq ft and $1.80/sq ft for energy efficient lighting, HVAC systems, and the building envelope. The process for obtaining the 179D deduction in Texas requires a detailed analysis that must be certified by a qualified third party. KBKG has the in-house expertise and the required professional qualifications to certify your Texas property as required by the IRS.


Case Study: Texas

A high school in Plano, Texas with 91,751 square feet qualified for the 179D full tax deduction.

KBKG successfully obtained $165,152 in total 179D tax deductions.


Eligible improvements

Taxpayers that invest in ground up construction or in improvements to their existing buildings are potentially eligible for 179D deductions. Eligible improvements must reduce energy use by making investments in any of the following categories: a building's envelope, HVAC, and/or interior lighting systems. There are different ways to pursue a deduction and all require comparison to the ASHRAE Standards and certification by a qualified expert.

Eligible deductions for Architects & Designers
Architects and designers in Texas who implement energy efficient designs on government buildings are also eligible for the deduction if their design meets the criteria.

Section 179D Benefits

Size of
Improvement
Partial Tax Deductions
Full Tax
Deduction
Lighting
HVAC
Envelope
50,000 sf
$15K - $30K
$30K
$30K
$90K
100,000 sf
$30K - $60K
$60K
$60K
$180K
300,000 sf
$90K - $180K
$180K
$180K
$540K