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.

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Qualification Requirements

To qualify for the 179D deduction, projects must meet specific technical and energy efficiency requirements for eligible improvements.

  • 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

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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.

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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.

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Discover our solutions to benefit tax credits and incentives

With our team of local experts, EPSA USA is focused on helping companies of all sizes take advantage of the Research and Development Tax Credit at both the federal and state level.
Our technical and legal experts follow IRS guidelines to identify qualified research expenses that dictate eligibility.

We work hand-in-hand with CPAs, clients, and partners to offer tailored solutions to identify R&D Tax Credits. Our streamlined process is efficient, fast, and guaranteed to optimize tax benefits for a variety of industries.

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EPSA USA (HQ),
1516 North 5th Street, Unit 230
PHILADELPHIA, PA 19122
+1 (215) 709 3245

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