179D Tax Deduction
The Energy-Efficient Commercial Buildings Tax Deduction is a significant financial incentive for designers to meet or exceed an agency's energy reduction requirements for new and existing buildings. Recent tax legislation extended the Energy Efficient Commercial Buildings Deduction, offering a tax deduction of up to $5/sf to those investing in energy efficient improvements placed in service after December 31, 2005.
Additional Tax Breaks for Architects & Designers
Architects and designers who implement energy efficient designs on government buildings are also eligible for the deduction if their design meets the criteria.
179D Benefits
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Size of Improvement
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Partial Tax Deductions For...
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Full Tax Deduction
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Lighting
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HVAC
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Envelope
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50,000 sf
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$15K - $30K
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$30K
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$30K
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$90K
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100,000 sf
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$30K - $60K
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$60K
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$60K
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$180K
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300,000 sf
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$90K - $180K
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$180K
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$180K
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$540K
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Are You an Ideal Candidate?
Unlike most deductions, which are based on the amount spent, this deduction is primarily based on affected square footages. Ideal candidates will generally have improvements with a square footage of at least 50,000 square feet. A wide range of improvements, from simple lighting retrofits to full-scale construction projects, qualify for this timely tax break. Other great candidates include regional or national chains with multiple locations.
The Process
The basis for developing and supporting this deduction is a detailed engineering analysis, as prescribed by the IRS. Our multi-disciplinary team of engineers and tax experts will ensure that you obtain the maximum deductions available, following IRS guidance. The process for obtaining the 179D deduction 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 and secure the lucrative tax and financial benefits that are offered by the 179D tax deduction. Our team can also assist in the design process for future projects by suggesting design alternatives that would ensure qualification for 179D and other specific green building incentives.
KBKG Advantage
Discover why so many companies and accounting firms rely on KBKG for their tax incentive, credit and deduction planning needs.
As one of the premier service providers in the industry, we are passionate about helping business owners and accounting professionals across the country identify, claim and—when needed—defend their tax savings strategies. Our KBKG Advantage is the reason why clients turn to us time and time again for assistance. For superior teamwork, tailored service, and assurance backed by our KBKG Audit Guarantee, you can rely on KBKG. Learn more...
179D Experts
KBKG offers a complimentary feasibility assessment that will illustrate how you can benefit from these deductions. Get started today with a feasibility assessment.
Upcoming Webinars
Claiming the Credit
We offer a complimentary feasibility assessment that will illustrate how you can benefit from these deductions.
45L Tax Credit
Tax credit for developers of energy efficient apartments and homes equal to $2k per dwelling unit.
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 individual.
Building Envelope
Energy efficient construction or improvements to walls, floors, roofs, fenestrations, and doors
HVAC
Improvements relating to energy efficient HVAC systems
Lights
Construction or improvements to building lights for energy efficiency