The 179D deduction is still alive.
If your project broke ground by June 30, 2026, you can still claim the Section 179D energy-efficient commercial buildings deduction — even if the building isn't placed in service for years.
What is Section 179D?
Energy deduction for commercial buildings
Section 179D is a federal tax deduction for energy-efficient commercial buildings. You can deduct up to $5.65 per square foot (2024 rates) when you install qualified systems.
Requires third-party certification
Your building must pass an energy audit and receive third-party certification that it meets energy-efficiency standards. We coordinate the certification and filing support.
Note: Section 179D is a deduction, not a credit or grant. It reduces your taxable income. Tax benefits vary by business type, income, and tax situation.
What changed under the OBBBA?
The One Big Beautiful Bill Act (Public Law 119-21, enacted July 4, 2025) terminates Section 179D for new construction projects that begin after June 30, 2026. This is a construction-start date, not a placed-in-service date.
Projects that broke ground by 6/30/2026 → 179D still available
If construction started on or before June 30, 2026, you can claim 179D when the building is placed in service—even many years from now.
Projects that break ground after 6/30/2026 → 179D not available
Construction starting after June 30, 2026 cannot claim 179D. You may still qualify for other incentives.
Are you eligible for 179D?
Check if your project meets these requirements:
Commercial building (not residential)
Construction began on or before June 30, 2026
Qualified systems: energy-efficient lighting, HVAC, insulation, or envelope
Third-party energy certification (audit)
Higher deduction rates are available (up to $5.65/sq ft) if you comply with prevailing wage and apprenticeship requirements. Base rates are lower without.
What's still on the table
Even if 179D doesn't apply, energy and sustainability projects have other strong incentives:
Federal
Section 48E: Clean Electricity ITC
Storage, geothermal, and some solar installations qualify at full rates. Wind and solar at 60% in 2026. No June 30 cutoff.
State & Utility
State and utility incentives
All 50 states offer energy rebates, tax credits, or grants. Programs vary by state and technology. Many have no expiration date.
Financing
C-PACE financing
Commercial Property Assessed Clean Energy. Available in 35+ states. 100% financing for energy upgrades, repaid through property tax assessments.
Other credits expiring June 30, 2026
Section 179D is not the only incentive with a June 30 deadline:
§ 30C (EV charging)
Unavailable for chargers placed in service after 6/30/2026. If you've already installed, filing support is available.
§ 45L (new energy-efficient homes)
Unavailable for homes acquired after 6/30/2026. Residential only; does not apply to commercial projects.
See if 179D applies to your project.
We coordinate energy certification, 179D filing support, and other incentive strategies.
Not tax advice. Section 179D rules, rates, and eligibility are complex and vary by state and project. This page summarizes facts from the One Big Beautiful Bill Act (Public Law 119-21). Consult your tax professional before claiming any deduction. Grantya coordinates energy certification and filing support but does not provide tax or legal advice.