Construction Executive Publishes Article by Tax Partner Barry Fischman, About 179D Deduction
By Barry Fischman and Dean Zerbe
The Energy Efficient Commercial Buildings Tax Deduction (179D) is a section of the tax code that rewards the design and installation of energy-efficient interior lighting, HVAC or building envelope systems in commercial buildings.
Congress created this incentive in response to the fact that 70 percent of electricity in this country is consumed by buildings—with nearly half of that attributed to commercial buildings. 179D is a common sense, technologically neutral way of encouraging energy efficiency in these specific types of powerdemanding structures.