Energy-Efficient Commercial Building Tax Deduction

The Energy Policy Act of 2005 (P.L. 109-58) authorized the Energy-Efficient Commercial Buildings Tax Deduction for expenses incurred for qualified energy efficient building investments made by a building owner. In government-owned buildings, the government may allocate this deduction to the person or persons primarily responsible for designing the qualified improvements. The deduction may be taken in the year the energy-efficient improvements are placed in service. The "Consolidated Appropriations Act, 2016 [PDF - 2 MB]" extended this deduction through December 31, 2016. In January 2018, SEC. 40413. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. (a) IN GENERAL.—Section 179D(h) is amended by striking ‘‘December 31, 2016’’ and inserting ‘‘December 31, 2017’’. In addition, 26 USC 179D: Energy efficient commercial buildings deduction has been amended. The provisions authorizing the deduction are codified in the 26 U.S.C. § 179D.

The Energy-Efficient Commercial Buildings Tax Deduction is a significant financial incentive for designers to meet or exceed an agency’s energy reduction requirements for new and existing buildings.

GSA Bulletin 2011-OGP-1.pdf [PDF - 1003 KB]

GSA's Allocation Forms [PDF - 235 KB]

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