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The Consolidations Appropriations Act of 2021 signed into law on December 27, 2020 permanently extended the 179D tax deduction for energy efficient building improvements.
179D deduction reduces the adjusted basis in the property for depreciation purposes.
179D is a popular tax incentive that provides building owners and eligible designers/builders the opportunity to claim a tax deduction of up to $1.80 per square foot for installing qualifying energy efficient systems and buildings. Tenants may be eligible if they make the construction expenditures.
The 179D deduction can be claimed by program managers, construction managers, designers, architects, construction contractors, general contractors, engineers, and sustainability consultants who work on local, federal, or state government property.
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