What is Internal Revenue Code Section 179D?

What is Internal Revenue Code Section 179D?

What is Internal Revenue Code Section 179D?

Section 179D is a federal tax deduction designed to encourage energy-efficient improvements to commercial and government buildings. Originally enacted under the 2005 Energy Policy Act, it allows deductions for qualifying energy-efficient lighting, HVAC, and building envelope systems.


For non-taxpaying building owners (e.g. government, nonprofit, tribal governments), which do not pay taxes and thus cannot directly benefit from the deduction, the statute includes a Special Rule. This allows the non-taxpaying entity to allocate the deduction to the designer—typically the architect, engineer, or contractor—responsible for the energy-efficient design or installation.

Building Owners — Government, Nonprofit, Tribal

Use the Realizse platform to:


  • Evaluate Designer qualifications as tax benefit partner

  • Confirm project certification status 

  • Validate that the tax benefit allocation is properly authorized, documented, and valued to provide compensation in return for transfer to partner

Tax-Exempt Entity

Designers

Certifiers

Commercial Entity

Building Owners — Government, Nonprofit, Tribal

Use the Realizse platform to:


  • Evaluate Designer qualifications as tax benefit partner

  • Confirm project certification status 

  • Validate that the tax benefit allocation is properly authorized, documented, and valued to provide compensation in return for transfer to partner

Tax-Exempt Entity

Designers

Certifiers

Commercial Entity

Building Owners — Government, Nonprofit, Tribal

Use the Realizse platform to:


  • Evaluate Designer qualifications as tax benefit partner

  • Confirm project certification status 

  • Validate that the tax benefit allocation is properly authorized, documented, and valued to provide compensation in return for transfer to partner

Tax-Exempt Entity

Designers

Certifiers

Commercial Entity

Building Owners — Government, Nonprofit, Tribal

Use the Realizse platform to:


  • Evaluate Designer qualifications as tax benefit partner

  • Confirm project certification status 

  • Validate that the tax benefit allocation is properly authorized, documented, and valued to provide compensation in return for transfer to partner

Tax-Exempt Entity

Designers

Certifiers

Commercial Entity

Typical Projects

Typical Projects

New construction and retrofit projects affecting lighting, HVAC, hot water, district energy, and building envelope systems qualify for up to $5/ft² of tax deduction.

New construction and retrofit projects affecting lighting, HVAC, hot water, district energy, and building envelope systems qualify for up to $5/ft² of tax deduction.

New construction and retrofit projects affecting lighting, HVAC, hot water, district energy, and building envelope systems qualify for up to $5/ft² of tax deduction.

Campus Wide Lighting Retrofit - 1M ft²

Campus Wide Lighting Retrofit - 1M ft²

Campus Wide Lighting Retrofit - 1M ft²

Campus Wide Lighting Retrofit - 1M ft²

Central Utility Plant affecting University Campus - 5M ft²

Central Utility Plant affecting University Campus - 5M ft²

Central Utility Plant affecting University Campus - 5M ft²

Central Utility Plant affecting University Campus - 5M ft²

University Multi-Use and Residential Development - 580,000 ft²

University Multi-Use and Residential Development - 580,000 ft²

University Multi-Use and Residential Development - 580,000 ft²

University Multi-Use and Residential Development - 580,000 ft²

Enroll a Project

Enroll a Project

Enroll a Project

Find out today if your project is qualified for the Realizse 179D Registry. Don't leave expiring tax benefit value on the table!

Find out today if your project is qualified for the Realizse 179D Registry. Don't leave expiring tax benefit value on the table!