The Energy Policy Act of 2005 created the Energy-Efficient Commercial Buildings Tax Deduction (Section 179D). It is intended to reduce the initial cost of investing in energy-efficient building systems via an accelerated tax deduction. Today, most building code requirements call for much higher energy-efficiency standards, so there is a good chance that your new construction projects will qualify.


  • Building owners and lessees who make energy-efficient improvements to their commercial buildings
  • Architects, engineers and contractors engaged in the design work of federal, state or local government-owned buildings


  • Qualifying businesses can receive up to $1.80 per square foot in deductions for eligible projects placed into service any time from 2006 to 2016
  • Includes energy improvements covering lighting, HVAC and building envelope projects
  • Provides the ability to go back three years to receive the benefit

The Tax Incentives Group at Doeren Mayhew can help you uncover energy-efficient tax deductions you’re currently missing out on. To learn more about the Section 179D tax deduction, contact our tax advisors.