Section 179D Energy-Efficiency Deduction

section 179D Deductions

The Section 179D Energy-Efficiency Deduction was implemented as a federal incentive to stimulate the U.S. economy. The deduction rewards architecture, engineering, and contracting businesses up to $1.80 per square foot for work on government owned buildings. The deduction applies to new constructions and past projects dating back to 2018. Since Section 179D was made permanent in 2021, the deduction provides ongoing tax benefits for architecture, engineering, and construction companies that work on design or installation aspects of new or renovated government-owned buildings and structures. These entities benefit by being able to claim an incentive for energy-efficient improvements to commercial and government buildings after construction is complete.

Keep in mind that while companies benefit by taking advantage of the deduction, there are rules and regulations to be aware of based on details like timing and contract terms. That’s where we come in! Here at Woodford Financial, we understand all the ins-and-outs related to 179D and we can steadily guide you to your maximum deduction. Let us be your Woodford County, KY CPA firm when it comes to energy-efficient deductions and all real estate related accounting.

To learn how the Section 179D tax deduction could provide your company with significant tax savings call us now at 859-832-0500 or request your free consultation online to learn more.

Properties Elegible for Section 179D

  • Government-owned buildings
  • Schools
  • Universities
  • Libraries
  • Building owners (commercial or multifamily)
  • Tenants making improvements