Section 179D of the Internal Revenue Code allows deductions for energy-efficient commercial buildings. These tax deductions were made permanent under the Consolidated Appropriations Act of 2021.
What Can Be Deducted?
A tax deduction of up to $1.80 per square foot is available to owners or designers of commercial buildings or systems that demonstrate a 50% reduction in energy usage accomplished solely through improvements to the heating, cooling, ventilation, hot water, and interior lighting systems. Partial deductions of up to $.60 per square foot can be taken for qualifying measures.
Eligible Time Frame
The deduction is available for buildings or systems placed in service after December 31, 2017.