The §179D tax deduction for energy-efficient commercial buildings will no longer apply to construction projects after June 30, 2026. To qualify for the §179D deduction, construction must begin before June 30, 2026, as mandated by the One Big Beautiful Bill Act of 2025.
The current deduction amount for buildings placed in service in 2025 is set at $5.81 per square foot when the project meets or is exempt from prevailing wage and apprenticeship (PWA) requirements. Deduction amounts will continue to increase annually based on inflation adjustments through June 30, 2026. The deduction may still be immediately claimed in the year the property is placed in service.
This article provides general educational information and is not tax or legal advice. Eligibility and tax treatment depend on the facts and rules in effect.
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