Energy Efficiency & Recent Changes to Section 179D

The Inflation Reduction Act of 2022 dramatically expanded the Section 179D energy-efficient commercial building deduction, further incentivizing investing in and designing sustainable buildings. Eligibility for the deduction now includes designers of commercial buildings owned by government and tax-exempt entities—including not-for-profit organizations, churches and other religious organizations, tribal organizations, and not-for-profit schools and universities—as well as commercial building owners. In addition to expanding eligibility, the deduction was increased from $1.88 to $5 per square foot. This session will cover the significance of these changes, how they add value, and when to apply this deduction.

Learning Objectives

1. Understand additional positive impacts to architecture firms promoting energy-efficient design not typically considered.
2. Discuss the benefit of the incentive for architects and engineers.
3. Identify potential eligible projects for the deduction.
4. Explain the new changes in the Inflation Reduction Act of 2022 for the Section 179D incentive.

---