Energy-Efficient Commercial Buildings Deduction (IRC section 179D)

Accelerated cost recovery deduction for commercial buildings for:

Energy-efficient interior lighting

Building envelop

HVAC

Hot water systems

$0.5-$1.00 per square foot dependent on the increase in efficiency - Deductions capped at $1.00 per square foot over four years

$2.50-$5.00 per square foot, dependent on the increase in efficiency if the prevailing wage and apprenticeship requirements are met - Deductions capped at $5.00 per square foot over a period of four years

Or, a deduction of the adjusted basis in ‘qualified retrofit plans’ that reduce a building’s energy use intensity by at least 25%