Since its creation under the Energy Policy Act (EPAct) of 2005, the §179D deduction has enabled countless building owners and designers to reduce their tax burdens while incentivizing the installation of energy-saving measures in buildings across the U.S. The deduction has been modified several times over the years, and was most recently expanded by [...]

When the Inflation Reduction Act (IRA) was signed into law last year, it brought several welcome changes to the §179D deduction for energy-efficient commercial buildings. For example, the new law raised the maximum deduction amount from $1.88 to $5 per square foot, lowered the threshold for qualifying energy efficiency measures, and allowed new categories [...]

For proponents of the §179D deduction for energy-efficient commercial buildings, the past two years have yielded some major victories. After being made a permanent part of the tax code in December 2020, the deduction has now been significantly expanded by the Inflation Reduction Act of 2022. Signed into law by President Biden on August [...]