Tax Alert: 179D Deduction Extended for Energy-Efficient Buildings

The Energy-Efficient Commercial Building Deduction (179D) was extended through 2020 when the president signed the year-end government spending bill on December 20, 2019. This valuable tax deduction of up to $1.80 per square foot is achieved through the installation of energy-efficient HVAC, building envelope and lighting assets.

This deduction applies to both new construction and renovation of qualifying commercial buildings (retail, office, industrial or warehouse) and apartment buildings (four stories or more). It is available to building owners, as well as contractors and designers who worked on eligible government-owned buildings. To qualify, the property must have been placed in service after December 31, 2005 and through December 31, 2020.

Our Construction and A&E professionals can help you maximize the 179D deduction on your 2019 returns and determine your eligibility for 2020 projects.

Carl Oliveri Carl Oliveri is the Construction Practice Leader and a partner at Grassi. He has over 25 years of experience advising owners and executives in the Construction industry, particularly in project-centric and companywide financial modeling, operational strategy development, financial statement accounting services and income tax method analysis. This extensive industry experience allows him to provide insight and advice to construction clients on marketplace trends and... Read full bio

Categories: Advisory