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Federal Energy Tax Deductions Extended for Building Owners & Contractors


February 9, 2018

Note: While compliance with ENERGY STAR Homes is not a clear indicator of compliance with 45L, the HERS rating MaGrann has completed for your homes is the tool we will use to review for compliance.

For 179D Commercial Building Projects (4 stories and up), MaGrann uses federally qualified ASHRAE Energy Modeling software to determine the energy savings targets required for the tax deduction.


Contact us to find out if you are potentially eligible for either tax benefit.

As a result of the newly passed Bipartisan Budget Act of 2018, federal tax benefits have been extended for energy efficient buildings that were placed in service prior to December 31, 2017!

The 179D Commercial Buildings Energy Efficiency Tax Deduction enables commercial building owners to claim $1.80/sqft, provided they have reduced total energy costs by 50% compared to minimum energy code requirements. Partial deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building envelope, or heating and cooling systems that partially qualify by meeting certain targets. The statute requires an independent verification of the energy savings.

The 45L Energy Efficient Home Credit was also recently retroactively extended through the end of 2017. This credit provides eligible contractors with a $2,000 tax credit for each energy efficient dwelling unit. Certification from an eligible certifier must be obtained before claiming the credit.​

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