The §179D Energy Efficient Commercial Building Deduction is a federal tax incentive encouraging energy efficient construction by providing building owners and designers with substantial financial benefits. An exciting aspect in 2024 is the inflationary increase of the maximum §179D Deduction to $5.65 per square foot for projects meeting the prevailing wage and apprenticeship requirements and $1.13 per square foot for those that do not. In 2023, the maximum deduction was $5.36 per square foot and $1.07 per square foot, respectively. In 2022 and prior years, the maximum deduction ranged between $1.80 to $1.88 per square foot. ICS §179D Qualification Process Flowchart
Qualifying entities can enjoy immediate tax benefits when installing the following three building systems: HVAC, lighting, and building envelope. It's crucial to recognize that the financial advantages may vary based on the energy-efficient upgrades and the overall size of the building. As the year unfolds, the §179D Deduction continues to be a catalyst for transformative and environmentally conscious construction practices.
Talk to the experts ICS Tax has the expertise to properly obtain §179D Deduction. We have Professional Engineers licensed in all states to perform energy modeling, building inspections, and preparing certificates of compliance. For designers of public and other buildings owned by tax exempt entities, we also have experts to complete and obtain allocations for the §179D Deduction. Contact ICS Tax for a consultation