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Energy Efficient Commercial Building Property Deduction. Improving Business Performance Through Sustainability & ESG
§179D Basics
The Energy-Efficient Commercial Building Tax Deduction, also known as Section 179D, is a federal incentive designed to promote energy efficiency in commercial buildings.
If you design energy-efficient buildings for government, nonprofit, or other tax-exempt organizations, you may be eligible to receive an allocated Section 179D tax deduction. Leyton assists architects, engineers, and design-build firms in identifying qualifying projects, calculating eligible deductions, and preparing the necessary documentation to support their claims.
To lock in these rates before the sunset, owners must satisfy the IRS “Start of Construction” requirements by June 30, 2026. This is typically achieved via:
Eligibility
look-back period
Yes, you can. For commercial building owners, if your building meets the eligibility criteria and the improvements were made after January 1, 2006, you can still claim the 179D Tax Deduction. For eligible designers of nontaxable property, there is only a three-year look-back period. It’s never too late to explore potential savings.
Why Leyton
Years of Experience
Countries
Energy Modeling
Saved on Tax
How to Claim
For buildings placed into service after 2023, the maximum deduction has increased to $5.81 per square foot, up from the previous limit of $1.88 per square foot.
For example, if your qualified project covers 50,000 square feet, you could potentially receive up to $250,000 in tax deductions.
Our Process
Our process has no upfront retainer or payment.
Invoiced after delivery of your report.
Conduct a feasibility study to determine the project’s eligibility and likelihood of qualifying for the Section 179D deduction.
Develop a detailed energy model of the building using DOE-approved software to evaluate projected energy performance.
A licensed Professional Engineer (PE) performs a site inspection to validate the energy model and certify that the building meets Section 179D requirements.
Prepare and deliver a comprehensive report summarizing the analysis, certification, supporting documentation, and all required Section 179D forms.
Trusted by 10,000+ Real Estate Investors
Supporting clients through every step of their Section 179d Tax Deduction journey.
John Schilling
Manager/Principa
@DDA development
“The highlights of working with Leyton were great communication, easy-tounderstand process/schedule, and overall professionalism from all team members.”
Nerin Kadribegovic
FAIA
@Kadre Architects
“The Leyton Team was awesome throughout, guiding us seamlessly through the process. I especially enjoyed working with Cedric, who understood how busy I was, so he fed me questions in a way that I could digest and process.”
Serge Sinanian
Executive Vice President
@Sinanian Development
“Leyton made a complicated-sounding process very simple and straightforward.
We provided the relevant documents, had a discussion and they handled the rest”
Akash Basin
Founder
@Bhasin Properties
“Leyton made the whole process very easy for the business owner. All we had to do was supply them with the necessary information and accommodate a site visit and they took care of everything else including breaking down the tax forms for our accountant.”
Neil Kapadia
Principal
@ViaNova Development
“The Leyton Team was awesome throughout, guiding us seamlessly through the process. I especially enjoyed working with Cedric, who understood how busy I was, so he fed me questions in a way that I could digest and process.”
Get in Touch
Our experts have conducted over 10,000 energy studies, including energy modeling, site inspections, and certifications of results. We would love to answer all of your questions.
FAQs
Can’t find the answer you’re after? Please contact our team
Yes, you can still claim the 179D tax deduction even if your building has received other energy-related incentives or rebates. However, it’s important to note that you cannot “double-dip” and claim the same expenses for both the 179D deduction and other incentives. You must adjust the total deduction amount to avoid duplication and ensure compliance with tax regulations.
Yes, certification under Leadership in Energy and Environmental Design (LEED) or other green building programs does not disqualify you from claiming the 179D tax deduction. The certification process for programs like LEED often involves meeting or exceeding certain energy-efficiency standards, which can align with the requirements for the 179D deduction. By demonstrating compliance with these programs, you may also have the documentation needed to support your 179D tax deduction claim.
Yes, you can claim the 179D tax deduction for retrofits performed in previous years, as long as they meet the required energy-efficiency standards and fall within the qualifying period (January 1, 2006, to December 31, 2023). There is no time limitation for claiming the deduction, so if your building improvements qualify, you can still take advantage of the savings even for older retrofits.