Tax Credits and Deductions Pre-Inflation Reduction Act Energy Audits 45L Tax Credits 179D Tax Deductions and Sustainability

Section 179D Tax Deduction

Let Apollo Energies certify your §179D Tax Deductions.

The Section 179D Tax Deduction

Section 179D Tax Deductions applies to energy efficiency improvements to a commercial building.

Pre-Inflation Reduction Act of 2022

  • Interior lighting systems. (25%)
  • Building envelope construction. (10%)
  • Heating, cooling, ventilation, and hot water systems. (15%)

In 2020 or prior years, the deduction was $1.80/ft² or $0.60/ft² per improvement. This means you can qualify for $0.60/ft² if you reach 25% in lighting, another $0.60/ft² if you reach 15% in HVAC, and another $0.60/ft² if you reach 10% in envelope.

In 2021 that rate increses with inflation to $1.82/ft² or $0.61/ft². In 2022 the rate jumps to $1.88/ft² or $0.63/ft².

Post Inflation Reduction Act