Section 179D Tax Deduction

Energy-Efficient Tax Savings for Owners & Designers

Earn up to $5.65 per square foot in first-year deductions for qualifying building improvements—supported by Accelerate's certified modeling and audit-ready documentation.

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What Is Section 179D?

Section 179D is a federal tax incentive that rewards qualifying energy-efficient improvements to commercial buildings and government or tax-exempt facilities. Eligible projects receive a per-square-foot deduction in the tax year the improvements are placed in service, with rates indexed for inflation.

To qualify, projects must meet ASHRAE 90.1 energy-efficiency standards via DOE-approved simulation tools and must be certified by a licensed engineer or contractor meeting IRS requirements.

Qualifying Systems Include:

Interior lighting systems
HVAC and hot water systems
Building envelope components

Enhanced deduction values available when prevailing wage & apprenticeship standards are met

Designers of government and tax-exempt buildings are eligible for allocations

Applies to projects placed in service during the current tax year

Eligibility

Who Qualifies for 179D?

Designers

Architects, engineers, contractors, and ESCOs who design energy-efficient systems for government or tax-exempt buildings. Eligible designers may receive allocation letters enabling them to claim the deduction.

Building Owners

Owners of commercial buildings and certain high-rise residential properties who install qualifying systems.

High-efficiency lighting systems
HVAC and hot water system upgrades

Roof, wall, and window envelope enhancements

Real Results

Benefits & Potential Value

Real Examples of 179D Impact

$3.8M

Medical Center Portfolio

$2.36M

University Campus Modernization

$1.3M

Hospital Building Retrofit

Actual benefits vary based on building size, system performance, modeling results, and labor compliance requirements.

Our Expertise

Why Work With Accelerate

Engineering Precision

Licensed engineers perform ASHRAE 90.1 modeling using DOE-approved software—ensuring accuracy, compliance, and defensibility.

Audit-Ready Documentation

We deliver sealed certifications, simulation data, narratives, allocations, and complete filing packages prepared for CPAs and IRS review.

Proven Results

Nearly three decades of experience, 10,000+ technical tax studies, and over $1 billion in confirmed client savings.

Our Approach

Streamlined Process

Consultation

Review project scope, timelines, and eligibility criteria.

Data Collection

Gather plans, specifications, and energy-related documentation.

Modeling & Certification

Complete energy simulations, evaluate system performance, and issue sealed engineering certificate.

Filing Support

Provide all required documents for your CPA and assist with follow-up questions.

Ready to Claim Your 179D Savings?

Schedule a consultation to confirm eligibility and estimate your potential deduction. Our licensed engineers will evaluate your project and provide comprehensive certification services.

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