Energy-Efficient Commercial Building Deduction – 179D

Under Section 179D of the international revenue code, taxpayers are allowed to expense up to $1.80 per square foot of the cost of improvements that increase energy efficiency.

The provision requires that certain technical requirements be met with respect to the ultimate energy efficiency reached. For most developers outside of California, this requires engaging engineers to prove that the improvements being made achieve those energy efficiency levels. For California properties, while the certification is still required, it is a formality only since California current code assures that the energy efficiency standard for the 179D deduction is met.

If you missed taking this deduction in any year after 2006, we can assist you in claiming it in the current year.