At this point, we commence with the IRS required Engineering Analysis and Site Inspection. All proper documentation and analysis will be gathered to satisfy all requirements of §179D of the I.R.C.
§179D tax deduction
Our Process
Our Commitment to Efficiency
Walker Reid Strategies strives to create a streamlined and transparent process to ensure our clients can maximize their benefits with minimal internal costs and efforts.
Would you Benefit From Energy Tax Evaluation?
About §179D Tax Deduction
Now get up to $5.00/sf
Starting in 2023, the Inflation Reduction Act has significantly expanded the §179D Tax Deduction program, substantially increasing the incentive to an impressive $5.00 per square foot (plus applicable inflation adjustments). §179D of the Internal Revenue Code (IRC) is a valuable tax incentive designed to reward energy-efficient practices in commercial buildings. Originally introduced as part of the 2005 Energy Policy Act (EPACT), this provision allows for a tax deduction of up to $1.88 per square foot, factoring in inflation adjustments.
The §179D Tax Deduction is specifically applicable to commercial buildings that make substantial reductions in their energy consumption related to interior lighting, heating, cooling, and building envelope improvements. Qualifying buildings can now enjoy even more substantial benefits, for HVAC improvements, building envelope enhancements, and lighting system upgrades, all contributing to a total potential deduction of up to $5.00 per square foot (plus applicable inflation adjustments), thanks to the recent expansion brought about by the Inflation Reduction Act of 2022.
Process Timeline:
Initial Consultation - Identifying Opportunities
An initial consult with a Walker Reid Advisor will result in an in-depth evaluation of your potential to benefit from a §179D Tax deduction.
Step 1
Step 2
Technical Feasibility Review
Our professional engineering team will conduct a feasibility study allowing us to pre-qualify your project for the section 179D Tax Deduction. Minimal information about the energy-efficient property will be requested from the property owner to do so.
Notice to Proceed/Engagement
After pre-qualifying your building for the §179D Tax Deduction and its financial benefit, you will authorize a notice to proceed and perform the energy and certification study.
Step 3
Step 4
Review and Delivery of Final Certification
After completion, an electronic copy of the final report will be provided, allowing it to be reviewed by you and your tax professional. Upon approval, a signed electronic copy will be delivered.
Step 5
Would You Benefit From §179D?
Discover the potential benefits of the EPAct §179D Tax Deduction for your company. Start by taking our brief eligibility quiz.
Latest News
The Internal Revenue Service (IRS) has released its annual inflation adjustments for the tax year 2025, bringing significant updates to the Energy-Efficient
As a subject matter expert in 26 U.S.C. § 179D, the recent case of United States v. Oehler underscores the vital importance
The landscape of residential construction is shifting significantly towards energy efficiency, especially now that the federal government has upgraded a powerful tax