The 179D tax deduction for energy-efficient facility improvements has been extended until the end of 2016.
The deduction expired at the end of 2014, but now applies retroactively and will not expire until Dec. 31, 2016. It allows FMs and tenants in leased buildings to use a one-time tax deduction of up to $1.80 per square foot to offset the costs of installing high-efficiency interior lighting, building envelopes or HVAC systems. To qualify, the new systems must reduce the facility’s total energy and power costs by 50%. Incentives of up to 60 cents per square foot are available for buildings that meet lower thresholds.
The DOE offers a free web-based calculator that can help you determine your eligibility for the deduction. To see whether you qualify for the tax credit and learn more about 179D, visit energy.gov.