By David M. Desmarais
By Daniel M. Andrea
By Michael A. Trotter
The Section 179D Energy-Efficient Commercial Building Tax Deduction applies to the design and installation of "green" building incentives in areas of interior lighting, HVAC, hot water, or building envelope systems in commercial buildings.
The Federal Energy-Efficient Commercial Building Deduction can potentially save building owners and lessees who make energy efficient improvements thousands. Qualifying commercial buildings include:
Designers of government-owned buildings such as architects, engineers, contractors, environmental consultants or energy services providers are also eligible to collect the credit for new construction or renovations performed on government buildings such as:
The tax provision was initially enacted under the 2005 Energy Policy Act (EPACT) and allows for a tax deduction of up to $1.80 per square foot. Buildings can partially qualify for $0.60 for HVAC, $0.60 for building envelope, and $0.60 for Lighting systems.
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