A commercial energy audit provides valuable insights into how your building consumes energy and identifies opportunities to reduce costs, improve efficiency, and qualify for tax incentives like the 179D Tax Deduction.
We will review the building plans to see if they qualify at no cost.
Here’s why investing in an energy audit is a smart move:
Maximize Cost SavingsQualify for Tax Deductions & IncentivesImprove Energy Efficiency & SustainabilityEnhance Property Value & Tenant AppealReduce Equipment Wear & Prevent Future IssuesGain Data-Driven Insights for Smarter DecisionsImprove Annual Revenue
Is Your Building Operating at Peak Energy Efficiency?
A commercial energy audit is the first step toward lowering costs, improving efficiency, and unlocking valuable tax benefits.
What is the 179D Energy Efficient Commercial Buildings Tax Deduction?
The 179D Tax Deduction is a federal incentive designed to reward businesses and building owners for making energy-efficient upgrades. This deduction allows eligible commercial property owners to claim up to $5.81 per square foot in tax savings when they implement qualifying energy efficiency improvements.
100,000 ft2 property before 179D
Energy Savings(kWh/Btu and KW)
up to $5.81 per ft2of floor area
100,000 ft2 property with upgrades and complying with 179D:
up to $581,000 tax deduction
Figures shown are based on Taxable Year 2025.
Eligible Energy-Efficient Improvements:
High-Efficiency HVAC & Mechanical SystemsAdvanced Lighting & ControlsEnhanced Hot Water HeatingImproved Building Envelope Upgrades
By leveraging 179D, you can reduce operating costs, enhance sustainability, and maximize tax savings—all while improving energy efficiency!
Designers and contractors of government-owned buildings
Real Estate Developers & Property Managers
Architects and engineers involved in energy-efficient projects
Nonprofit & Tax-Exempt Entities (Coming Soon)
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Who Qualifies for the 179D Tax Deduction?
The 179D Tax Deduction is available to a range of businesses, professionals, and property owners who invest in energy-efficient upgrades.
By taking advantage of the 179D Tax Deduction, qualified businesses and professionals can reduce costs, increase sustainability, and boost long-term savings.
How Much Can You Claim With the 179D Tax Deduction?
The 179D Energy-Efficient Commercial Buildings Tax Deduction allows eligible businesses to claim up to $5.81 per square foot in tax savings, depending on the level of energy efficiency improvements made. Buildings of four stories or more may also qualify for an additional $2,500 tax credit.
Tax Deduction Breakdown:
Up to $5.81 per square foot for buildings that achieve a 50% or greater energy reduction compared to industry standards.
Partial deductions available for improvements to specific building systems, such as:
HVAC & Mechanical Systems – Up to $2.68 per sq. ft.
Lighting Systems – Up to $0.54 per sq. ft.
Building Envelope (Insulation, Windows, Roofing) – Up to $2.68 per sq. ft.
Bonus Deductions for Prevailing Wage & Apprenticeship Compliance
If your project meets prevailing wage and apprenticeship requirements, you may qualify for higher deduction amounts, reaching the full $5.81 per square foot.
By leveraging the 179D Tax Deduction, you can significantly reduce project costs while making your building more energy-efficient.
Taxable Year 2025
PROPERTY MEETS ONLY 179D ENERGY CRITERION
Deduction Amount ($/ft2)
$0.58-$1.16
Savings increase $0.02 for each percentage point of energy savings above 25% up to a maximum of $1.16.
PROPERTY MEETS ALL 179D CRITERIA
(ENERGY, PREVAILING WAGE, AND APPRENTICESHIP)
Deduction Amount ($/ft?)
$2.90-$5.81
Savings increase $0.12 for each percentage point of energy savings above 25% up to a maximum of $5.81.
