· ENERGY EFFICIENCY · TAX DEDUCTION · BUILDINGS · 179D
A Commercial Building Deduction Most Businesses Overlook
The 179D energy-efficient commercial building deduction is one of the most consistently overlooked tax opportunities in real estate and construction. Archer Lewis identifies whether you qualify, documents it correctly, and makes sure you capture the full deduction.
Our Approach
A deduction available to more businesses than most realize.
The 179D deduction rewards energy-efficient improvements to commercial buildings, including lighting, HVAC, and building envelope. For building owners, it reduces taxable income directly. For architects, engineers, and designers who work on government-owned buildings, it can be allocated to them as the designer. Many businesses in real estate, construction, and design don't realize they qualify until someone asks the right questions. Archer Lewis performs the analysis, coordinates the required energy study, and documents everything the IRS needs to support the deduction.
What's Included
Everything the 179D deduction requires
Claiming 179D correctly requires more than noting it on a return. It requires an energy study, proper documentation, and someone who knows how to defend it.
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Qualification Analysis
We review your building projects and activities to determine whether you qualify and how much you can claim.
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Energy Study Coordination
A qualified energy study is required to support the deduction. We coordinate with the right specialists to get it done correctly.
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Designer Allocation (Government Buildings)
Architects, engineers, and designers who work on government-owned buildings can receive the deduction from the building owner. We handle that allocation.
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Deduction Documentation
The IRS requires specific documentation to support 179D claims. We prepare and maintain everything needed to defend the deduction.
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Prior Year Review
If you've built or renovated commercial buildings in prior years and didn't claim 179D, we look back and identify missed opportunities.
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Integration with Tax Strategy
The 179D deduction works best as part of a broader tax plan. We integrate it with your overall tax position.
The 179D deduction has been available for years, and many eligible businesses have never claimed it.
Identifying 179D eligibility requires specific expertise most general tax preparation doesn't include. Archer Lewis proactively reviews client projects for 179D eligibility during tax planning, rather than after the filing deadline has passed.
See If You Qualify
Common Questions
What building owners and designers ask about 179D.
Owners of commercial buildings that have made qualifying energy-efficient improvements to lighting, HVAC, or the building envelope. Architects, engineers, and designers who worked on government-owned buildings can also qualify. The building owner can allocate the deduction to them.
The deduction can be worth up to $5.00 per square foot for buildings that meet the highest efficiency standards, with lower amounts for partial improvements. The exact amount depends on the energy study results and which building systems were improved.
The IRS defines specific energy efficiency standards for each building system: lighting, HVAC, and building envelope. A qualified energy study measures your building against those standards and documents what qualifies and at what level.
In many cases, yes. If you built or renovated a commercial building in a prior year and didn't claim 179D, there may be an opportunity to go back and capture the deduction through an amended return. We review prior projects as part of our qualification analysis.
No. 179D applies to commercial buildings only. Residential properties have separate energy-related incentives, including the 45L credit for energy-efficient new homes. If you're working on residential projects, we can evaluate those separately.
