Owners reviewing eligible construction or improvements begun on or before June 30, 2026.
Energy-efficient commercial buildings deduction
Evaluate your project.
Document the deduction.
A focused review of project timing, energy performance and documentation helps determine whether a commercial building qualifies for §179D.
How it works.
Section 179D covers qualifying energy-efficient lighting, heating, cooling, hot water and building-envelope systems. Eligibility and the deduction depend on the project facts and applicable requirements.
Current law ends the deduction for property whose construction begins after June 30, 2026. Projects with construction beginning on or before that date still need a complete eligibility review; the construction date alone does not establish qualification.
Qualified individuals must certify the required energy savings. We coordinate the engineering evidence and documentation with your tax preparer, including any allocation required for eligible designers of tax-exempt buildings.
Who it fits
Designers evaluating a deduction allocated by an eligible tax-exempt owner.
Projects that warrant a review of eligibility, available records and filing procedures.
What the engagement looks like.
- 01Timing and eligibility
Review construction start, placed-in-service dates, building use and applicable requirements.
- 02Engineering review
Evaluate systems and modeled energy savings against the required standard.
- 03Certification
Coordinate certification by a qualified individual and any allocation documentation.
- 04Tax coordination
Deliver supporting records for your CPA to determine the appropriate filing.
Innovate Real Estate Tax Strategies does not provide legal advice. Final tax positions should be evaluated with your independent tax advisor.
Common questions
Before you start.
Every engagement begins with a free review of your facts. These are the questions we hear most.
Can a project begun after June 30, 2026 qualify?
No. Current law terminates §179D for property whose construction begins after June 30, 2026.
How much can be deducted?
The amount depends on square footage, energy savings, applicable annual limits and wage and apprenticeship requirements. Your project needs an individual review.
Is this the same as an energy review?
No. Energy Solutions evaluates operational efficiency. A §179D engagement evaluates a specific tax deduction and its documentation requirements.
Reviewed November 4, 2026. References: IRS: Energy efficient commercial buildings deduction (§179D). Educational overview; individual facts determine treatment.
Start with the property