Which Buildings Qualify?
Section 179D applies to several building types, including:
- Office buildings
- Warehouses
- Industrial facilities
- Retail
- Mixed-use properties
- Hospitals, healthcare facilities and laboratories
To qualify, the building(s) must meet defined energy-performance standards compared to a reference baseline established in federal guidance.
What Improvements Are Eligible?
Qualifying projects improve permanent energy-efficient improvements to major building systems, including:
- Interior lighting systems (e.g., LED upgrades, advanced controls)
- Heating, cooling, ventilation and hot water systems
Projects may qualify as whole-building upgrades or through recognized partial-system if they meet the required efficiency thresholds and documentation standards.
Why Act Before 179D Changes or Expires?
Taking advantage of 179D now can:
- Reduce upfront net cost of energy efficiency projects through substantial tax deductions
- Improve project ROI and accelerate payback periods on efficiency investments
- Offset capital budgets for deferred maintenance and modernization
- Lock in benefits under current rules before changes or expiration
Because the deduction is calculated on a per–square foot basis, larger facilities can generate particularly meaningful tax savings when they meet the highest efficiency tiers and labor requirements.
How We Can Help?
EMC can work with you to:
- Identify projects and buildings that are strong 179D candidates
- Find and redeem utility incentives that can make the ROI even more attractive
- Execute qualifying lighting and HVAC projects
Information Source: energy.gov
