Turn energy-efficient upgrades into tax savings with 179D deductions and 45L credits.
The Energy Policy Act of 2005 (EPAct) and the inflation Reduction Act of 2022 (IRA) have created lucrative tax incentives, including the 179D deduction and the 45L credit, to encourage energy-efficient construction and improvements.
At CRS, we help you navigate the complex requirements and claim the maximum benefits available for your commercial or residential buildings.
Our experienced engineers are well-versed in energy codes and tax regulations, ensuring your projects are certified and compliant.
Claim immediate deductions or credits for energy-efficient projects, improving your cash flow.
Energy-efficient buildings are more attractive to tenants and buyers, increasing their market value.
Lower your operating expenses and contribute to a greener environment.
Potentially claim tax benefits for eligible projects completed in previous years.
Maximum Tax Benefit | Before 2023 | 2023* | 2024* | 2025* |
|---|---|---|---|---|
179D Deduction | $1.88 / sq. ft. | $5.36 | $5.65 / sq. ft. | $5.81 / sq. ft.
|
45L Credit | $2,000 / unit | $5,000 / unit
| $5,000 / unit | $5,000 / unit
|
*Tax benefits are reduced if prevailing wage and apprenticeship requirements are not met, and may adjust for inflation in subsequent years.
Get answers to your questions about our energy tax services. Have other questions? Please contact us.
Capital costs associated with these commercial building systems can potentially qualify for 179D:
Owners and tenants of many types of commercial buildings can benefit from energy-efficient upgrades and potentially qualify for tax incentives. Some common examples include:
Additionally, architects, engineers, designers, and other contractors who have implemented energy-efficient designs for government-owned and other tax-exempt buildings can now benefit from the deduction. Building types include:
The 45L tax credit is available to owners or developers of energy-efficient residential dwellings. Building types include:
Yes, both the 179D deduction and the 45L credit can apply to new and existing buildings that meet specific energy efficiency criteria.
To apply retroactively, you typically must file an amended tax return. 179D claims can be filed up to three years from the original filing date. 45L claims are generally available for projects completed within the last three years.
Complex eligibility requirements for the 179D deduction and the 45L credit are set by a combination of federal government and industry organizations and programs. These include the U.S. Department of Energy, Environmental Protection Agency, International Energy Conservation Code (IECC), the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) and the IRS’ Internal Revenue Code as updated by the Inflation Reduction Act (IRA) of 2022.
CRS ensures compliance with detailed 179D and 45L requirements while maximizing your tax benefits. Our experts specialize in ASHRAE and IECC standards as well as newer standards set by the IRA. We streamline all energy modeling, testing, and documentation needed to complete your certification report, thus reducing administrative burden and IRS risk. We are committed to staying up to date with evolving standards and regulatory changes, ensuring that projects consistently meet the latest requirements.
Take control of your property’s tax burden and discover the hidden potential in your assets.
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