Financial Benefits

179D Energy Efficient Tax Deduction

179D is a tax incentive that is available for newly constructed or renovated  buildings that have installed energy saving elements. It provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on government projects.

Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $1.80 per square foot for both new and existing buildings.

 
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Interior and Parking Garages
(-16 2/3% - $60)
(With Exceptions)

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Heating, Cooling, Ventilation and Hot Water
(-16 2/3% - $60)

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Windows, Doors, Roofs and Insulation
(-16 2/3% - $60)

 
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Qualifying energy savings elements include

  • Hot water systems

  • Building envelope systems

  • Heating, ventilation, and air conditioning (HVAC)

  • Interior lighting systems

  • Insulation in ceilings, walls, floors, and roofs

  • Lighting sensor and controls

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Sample Project Size 
(Sq. Ft.)
Lighting 
($.30-$60/Sq.Ft.)
HVAC 
($.30-$.60/Sq.Ft.)
Building Envelope
($.60/Sq.Ft.)
Total Max Deduction 
($1.80/Sq.Ft.)
50,000 $15,000-$30,000 $30,000 $30,000 $90,000
100,000 $30,000-$60,000 $60,000 $60,000 $180,000
250,000 $75,000-$150,000 $150,000 $150,000 $450,000
500,000 $150,000-$300,000 $300,000 $300,000 $900,000
1,000,000 $300,000-$600,000 $600,000 $600,000 $1,800,000

The Orion Power Group Process

  • Perform a free assessment

  • Perform an on-site inspection in the jurisdiction of the qualifying building

  • Get an allocation letter if applicable

  • Execute IRS complaint building energy models

  • Document the process in a report

179D is underutilized by many building and property owners who are unaware that they qualify for the deduction.

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Financing Partners

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