Section 179D Tax Deduction

High-Value Deductions for Sustainable Commercial Assets

The Section 179D Energy Efficient Commercial Building Deduction has evolved into one of the most lucrative tax incentives for the built environment. Following the Inflation Reduction Act, the financial benefits have expanded significantly, offering commercial building owners and the primary designers of government-owned buildings a powerful tool to offset the costs of high-performance energy systems.

We provide the technical certification to substantiate your claim. Capturing the maximum 179D deduction requires sophisticated energy modeling and a professional certification process. At Calvetti Ferguson, we combine deep tax technical knowledge with engineering-level oversight to ensure your building’s envelope, HVAC, and lighting systems meet the rigorous IRS standards for qualification.

Navigating the Enhanced 179D Landscape

The modern 179D landscape offers tiered benefits based on energy reduction and labor standards. We help you navigate these complexities to maximize your return on investment.

Strategic Benefits for Owners and Designers

The scope of 179D extends beyond just the owner of the physical asset, creating unique opportunities for the professional services sector.

• • • Commercial Building Owners: Realize immediate deductions for new construction or energy-efficient retrofits in warehouses, offices, multi-family (4+ stories), and industrial facilities.

    • Architects, Engineers & Designers: For government-owned buildings (schools, municipal offices, airports), the tax deduction can be allocated to the primary designer, providing a massive tax-planning advantage for professional service firms.

    • Prevailing Wage & Apprenticeship Multipliers: We help you document compliance with labor requirements to unlock the high-tier deduction rate of up to $5.00+ per square foot.

Institutional-Grade Certification Process

To satisfy the IRS, 179D claims must be certified by a qualified third party using department-approved software.

• • • ASHRAE Standard Modeling: Our team compares your building’s energy performance against the relevant ASHRAE baseline to determine your percentage of energy savings.

    • Technical Site Verification: We conduct the necessary site visits and technical reviews to inventory your building’s lighting, HVAC, and envelope systems.

    • Compliance Documentation: We provide the formal certification and technical reports required to defend the deduction in the event of an audit.

Strategic Application Across the Built Environment

We apply our 179D expertise to ensure that both the asset owners and the creative leads are capturing the maximum value from their sustainable investments.

• New Construction & Major Retrofits: Integrating 179D studies into the design phase of large-scale commercial developments to ensure high-tier qualification.

• Public Sector Projects: Assisting government entities in “assigning” the deduction to their architects and engineers, creating a value-add for public-private partnerships.

• Portfolio-Wide Assessments: For PE firms and REITS, we conduct portfolio reviews to identify high-potential assets that have undergone recent HVAC or lighting upgrades.

Why Choose Calvetti Ferguson?

We offer a multidisciplinary approach that combines engineering-based energy modeling with top-tier tax strategy.

• Upmarket Technical Depth: We understand the nuances of the “Primary Designer” allocation and the complex math behind the energy-reduction sliding scale.

• Integrated Capital Strategy: We don’t view 179D in a vacuum. We coordinate these findings with your Cost Segregation Studies to ensure you aren’t “double-dipping” and that your total depreciation strategy is optimized.

• Audit-Ready Reporting: Our reports are designed to meet the highest standards of professional rigor, providing peace of mind for your board and your tax team.

Ready to Capture Your Energy Efficiency Value?

Don’t let your investment in sustainability go unrewarded. Let’s build the transparent, high-integrity certification your project deserves—partner with a firm that understands the intersection of building science and tax strategy.

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