If you are providing energy efficient improvements to a commercial government buildings, contact AGP today to see if you qualify for 179D.


“Contractors Benefit from Section 179D” by Ross Nisly | Senior Associate – Tax ross-nisley-email

Are you a contractor, architect, or engineer doing work on public buildings? Section 179D allows for an immediate tax deduction for expenses related to energy efficient building components that you may be entitled to if the building owner is a public entity (federal, state or local government).

How Section 179D Can Apply

The PATH Act-passed and signed into law at the end of 2015, included a provision that extended the Energy-Efficient Commercial Building Deduction (Section 179D) for two years. The public building owners’ maximum $1.80 per square foot tax deduction allows an immediate benefit to be passed to the contractors, architects, and/or engineers working on the job since government entities typically do not pay tax.


Systems to be Improved

The following is an inclusive list of the systems eligible for 179D.

• HVAC system
• Building envelope
• Interior lighting system
• All required to meet specific energy efficient standards

If you are involved with jobs providing energy efficient improvements to a commercial government building, contact me at mailto:rnisly@applegrowth.com or 330.867.7350, to see if you may be able to take advantage of this deduction.