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 provisions authorizing the deduction are codified in the 26 U.S.C. § 179D. The following bill extends the tax credit. DIVISION Q — REVENUE PROVISIONS SECTION 1. SHORT TITLE; ETC. (a) SHORT TITLE.—This division may be cited as the ‘‘Taxpayer Certainty and Disaster Tax Relief Act of 6 2019’’. SEC. 131. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. (a) IN GENERAL.—Section 179D(h) is amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 2020’’.

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]

Last Reviewed: 2020-03-25