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Modern Housing Complex

179D Tax Deduction

Unlock Up To $5.81 Per Square Foot in Energy Tax Deductions

22+ Years

Industry Experience

55,000+

Studies Completed

$10B+

Client Tax Savings

The 179D Tax Deduction Process

1

Initial Assessment

CSSI reviews your building specifications and documentation to determine eligibility for deductions of up to $5.81 per square foot for energy-efficient commercial buildings.

2

Professional Site Visit

A CSSI licensed engineer conducts a comprehensive on-site inspection to document your building’s energy systems including HVAC, lighting, and building envelope.

3

Energy Modeling

Using IRS-approved software, our engineers model your building’s energy performance against ASHRAE standards to calculate your eligible deduction amount.

4

Certification & Filing

CSSI provides all required certification documentation and works with your tax professional to properly claim the deduction on your tax return

What is Section 179D Tax Deduction?

Section 179D is a federal tax incentive that rewards commercial building owners and designers for energy-efficient building improvements. It provides substantial tax deductions—up to $5.81 per square foot—for installing qualifying energy-efficient lighting, HVAC, and building envelope systems that reduce energy consumption compared to industry standards.

Filling Out Tax Form

Significant Tax Savings

Claim up to $5.81 per square foot in immediate tax deductions, potentially saving hundreds of thousands of dollars on larger properties.

Accelerate ROI on Improvements

The tax deduction significantly improves the return on investment for energy upgrades, often shortening payback periods by years.

Enhanced Building Value

Energy-efficient improvements reduce operating costs and increase property marketability, creating both immediate tax benefits and long-term value.

Who Can Claim the Deduction?

The 179D tax deduction is available to those who own or design energy-efficient commercial buildings. The 2022 Inflation Reduction Act expanded eligibility to include tax-exempt organizations who can allocate the deduction to the primary designers of qualifying systems

Commercial Building Owners

Property Owners who implement qualifying energy-efficient systems in their buildings.

Tax Exempt Building Owners

Government, non-profit, religious, and tribal organizations can allocate deductions to their building designers.

Architects & Engineers

Designers of energy-efficient systems for government, non-profit, religious, or tribal buildings can receive allocated deductions.

Design-Build Contractors

Companies that both design and construct energy-efficient building systems for qualifying tax-exempt entities

Industries That Can Benefit from the 179D Tax Deduction 

The 179D deduction applies to virtually any commercial building that implements qualifying energy-efficient systems, including:

Multi-Family Development (4+ Stories)

Government (Designers)

Religious, Charitable, and Tribal
Organizations(Designers)

Warehouses

Office

Retail Properties

Manufacturing Properties

Get A Free Estimate

Are you ready to discover how much you can save through cost segregation? Allow me to provide you with a free, no-obligation estimate tailored to your property. Reach out today so we can start optimizing your tax benefits together!

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