179D Tax Deduction
Section 179D allows a tax deduction of up to $1.80 per square feet for energy-efficient government-owned buildings.
Because the owners of these public buildings are nontaxable entities, the deduction is then passed on to the primary designers of the buildings—in this case, engineering, architecture, and construction entities that qualify as designers. The purpose of the deduction is to incentivize designers of government-owned buildings to utilize energy-efficient systems and components within the construction projects.
What Type of Improvements Qualify?
- Building Envelope: Energy efficient construction or improvements to walls, floors, roofs, fenestrations, and doors
- HVAC: Improvements relating to energy-efficient HVAC systems
- Interior Lighting: Construction or improvements to building lights for energy efficiency
All buildings and structures can qualify for the deduction, below are a few examples:
- Airports
- Courthouses
- Libraries
- Military Bases
- Parks
- Schools
- Universities
The numbers between the three types of improvements can add up!
Project Sq. Ft
50,000
250,000
500,000
1,000,000
Max Deduction
$90,000
$450,000
$900,000
$1,800,000
Get in touch
Contact us Today
Northern California
1901 Concourse Drive
San Jose, CA 95131
Texas
PO BOX 342106
Austin, TX 78734
© Orca Financial 2023
All Rights Reserved