Calvetti Ferguson – Find Out If You Qualify For Section 179D Tax Deduction

The Section 179D tax deduction is a compelling federal tax incentive available to companies designing and constructing energy-efficient systems in commercial buildings. Specifically, Section 179D is eligible for work performed on three systems; interior lighting, HVAC (heating, cooling, and ventilation) and hot water, and building envelope.  

• For properties placed into service in 2022 and prior, a tax deduction of up to $1.80 per square foot is available for the installation of these systems that results in 50% or greater energy savings as compared to a baseline standard. There is eligibility to claim a $0.60 per square foot deduction for upgrades that result in less energy savings. Properties placed into service in 2021 or 2022 are adjusted for inflation, resulting in a higher deduction rate.
• Thanks to the Inflation Reduction Act of 2022, properties placed into service in 2023 or later can now achieve a tax deduction of up to $5.00 per square foot is available for a 50% or greater energy savings. There is the eligibility to claim a $2.50 per square foot deduction for upgrades that result in 25% energy savings, with an increase of $0.10 per square foot for every percentage increase.

Claiming the Deduction

Our firm has significant experience working with Texas companies across several industries to claim this lucrative tax savings opportunity. Calvetti Ferguson team members have the engineering and accounting expertise to conduct the required quantitative and qualitative assessments, provide certifications, and prepare the necessary documents for submission to the IRS. The result is a turnkey process that can result in significant federal tax savings.