Tax Incentives

179D tax deductions are available to owners and developers when they build or renovate a commercial or multifamily building. They are also available for the architect, engineering, or contracting firm of a government building that is energy efficient. The maximum deduction is $1.80 per square foot. Group14 can perform the 179D energy analysis and assist with the reporting.

Things to know:

• The three systems that are eligible for the deduction are the building envelope, HVAC/hot water systems, and interior lighting systems.  
• Lighting systems typically meet the efficiency requirements and can qualify for up to a $0.6/SF tax deduction.
• An architect/engineer/contractor can go back three years on government buildings to receive this incentive by requesting an allocation letter from the government agency and amending their returns to receive the 179D benefits.

Learn about the 179D Commercial Buildings Energy-Efficiency Tax Deduction.

45L tax credits of up to $2,000 are available to builders of new energy-efficient homes. Group14 provides modeling, site inspection, and certification services required to qualify homes for the tax credit.

Things to know:

• Apartments are eligible, but the building must be three stories or less.
• Homes built in the United States between January 1, 2018, and December 31, 2021, qualify, but the timeline is often extended by Congress. Please check with Group14 for the current status of the credit.
• The building envelope requirements are often the hardest to meet. If possible, engage with Group14 early in the design process to determine the building system performance specifications needed to secure the credit.

Learn about the 45L Energy Efficient Home Tax Credit.