• 179D Deduction

What is the §179D Deduction?

EPSA USA provides expertise in leveraging the §179D Deduction, also known as the Commercial Buildings Energy-Efficiency Tax Deduction. Enacted in 2005 by the Energy Policy Act, this deduction rewards Architects, Engineers, and subcontractors who undertake energy-efficient projects on tax-exempt or private-sector properties in the United States.

Under the §179D Deduction, companies can receive up to $5.00 per square foot for improvements that surpass current energy efficiency thresholds, following updates from the Inflation Reduction Act. This is a notable increase from the previous maximum of $1.88 per square foot for projects placed into service before 2022.

EPSA USA is dedicated to helping you maximize the benefits of this deduction, ensuring your projects meet the necessary criteria and securing the optimal tax savings for your business.

Request an Assessment

Qualification Requirements

Eligible Improvement

Architecture and engineering firms are typically responsible for designing and fitting a buildings technical specifications.

Technical specifications can be seen as:

  • Building envelope
  • Lighting Systems
  • Heating, ventilation, and air conditioning (HVAC) systems

Tax Exempt Buildings

  • Hospitals
  • Churches
  • Schools/Universities
  • Airports
  • Military Bases
  • Libraries
  • Prisons
  • Non-profit

How Much is the Deduction?

  • 2022 and Prior
    Up to $1.88 per sq ft
  • 2023 and Forward
    Up to $5.00 per sq ft

Claiming the §179D Deduction

Reduce Taxable Income

  • The §179D deduction reduces your taxable income for the year claimed.

Short/Long Term Saving

  • The §179D deduction allows the designer short-term savings on their taxable income that year.
  • §179D principles also promote long-term savings for the client by because of the lower energy consumption year after year.

Contact us today

Ready to elevate your firm’s capabilities and client service? Contact EPSA today to explore how our partnership can be a catalyst for your success. Let us navigate these incentives together, ensuring your firm remains at the forefront of innovation and expertise.

Contact our experts

Mike Nobile
[email protected]

Book a meeting

Rachel Lindblade
[email protected]

Review this one-page summary

Explore our dedicated one-pager on the §179D deduction to access detailed information about eligibility criteria and the benefits it offers. Learn how this deduction can enhance energy efficiency in your projects and discover the financial advantages it brings.

Download