<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=5133266&amp;fmt=gif">

info@ny-engineers.com
Search here..

╳

What is the 179D Tax Deduction?

The 179D Tax Deduction incentivizes energy efficiency in commercial buildings by offering a federal tax deduction of up to $5.00 per square foot. This program encourages businesses to reduce their energy consumption and environmental footprint while reaping financial benefits.

From newly constructed buildings to energy-efficient retrofits, the deduction can amount to serious savings—all while contributing to sustainability goals.

Key benefits include:

  • Significant tax savings: Reduce tax liability on energy-efficient upgrades or construction.
  • Cost offsets for green initiatives: Invest in sustainable building practices without breaking the bank.

Who Qualifies?

tax-budget-plan-concept

Who Qualifies?

The 179D Tax Deduction is available to a variety of professionals and property owners who integrate energy-efficient systems into their commercial buildings.

  • A Commercial Property Owner upgrading or constructing energy-efficient properties.
  • Architects, Mechanical Engineers, Electrical Engineers, and other designers of tax-exempt buildings.

What Types of Buildings Qualify for the 179D Tax Deduction?

Commercial Buildings

  • Office Spaces
  • Retail Buildings
  • Warehouses

Residential Buildings (Over 4 Stories)

  • Apartment Complexes
  • Student Housing
  • Assisted Living Facilities

Public Buildings

  • Government Facilities
  • Schools and Universities
  • Libraries

If you're unsure whether your building fits these categories, our expert team can guide you through the qualification process!

Get In Touch

What Energy-Saving Measures Are Eligible for the 179D Deduction?

To qualify for the 179D deduction, a building must meet the energy-efficiency standards established by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). These standards are designed to enhance energy efficiency in three key areas

1. Building Envelope

Improve energy retention with systems like:

  • Enhanced insulation
  • Low U-factor windows
  • Radiant barriers

2. HVAC Systems

Upgrades may include:

  • High-efficiency heating and cooling units
  • Energy recovery systems
  • Smart thermostats for optimized performance

3. Interior Lighting Systems

Save energy with:

  • LED lighting installations
  • Daylight response controls
  • Occupancy sensors

What documentation is required to claim the 179D Tax Deduction?

Application Claim Form Filling

To claim the deduction, precise documentation is crucial. Here's what you'll need:

  • Energy Analysis Report confirming compliance with ASHRAE standards.
  • Building Plans including mechanical, electrical, and architectural drawings.
  • Certification by a Qualified Professional attesting the building meets energy efficiency requirements.
  • Detailed expense records for eligible systems and materials.
Application Claim Form Filling
Online Tax Concept

How We Can Assist Tax Audit Firms

Online Tax Concept

We deliver high-quality energy models in the shortest timeframe, ensuring they meet the required standards. Additionally, we support tax audit firms with thorough documentation related to the energy modeling and energy savings. We simplify the compliance processes and help achieve energy-related deductions or credits.

Get Pricing On a New MEP Design Proposal in Fewer than 24 Hours
Request a proposal →

How NY Engineers Can Help You Maximize Your 179D Tax Deduction

When it comes to claiming the 179D tax deduction, precision and compliance are critical. At NY Engineers, we specialize in providing detailed energy analysis reports.

Why Choose NY Engineers?

  • Our team of certified engineers is experienced in conducting energy modeling that complies with IRS-approved standards, such as EnergyPlus and DOE-2.
  • We deliver accurate energy simulations to ensure your systems meet or exceed the required energy efficiency thresholds.
  • We deliver accurate energy analysis reports at a competitive cost, ensuring you maximize your 179D tax deduction without overspending. Our streamlined processes and advanced tools reduce project timelines, saving both time and money. Trust us for high-quality results that are as cost-efficient as they are precise.

Request a Proposal