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


Max Deduction


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