What is EPAct 179D?
The EPAct 179D tax deduction, expanded by the Inflation Reduction Act (IRA) of 2022, rewards businesses for energy-efficient improvements to commercial buildings. Qualifying upgrades include:
- HVAC and hot water systems
- Interior lighting
- Building envelope (insulation, windows, roofing)
Who Qualifies?
At SIEC, we help a wide range of property owners and designers unlock EPAct 179D savings. You may qualify if you own or design for:
- Commercial Properties: Offices, retail stores, hotels, warehouses—perfect for boosting your bottom line with energy upgrades.
- Industrial Facilities: Manufacturing plants, distribution centers—ideal for cutting energy costs in high-use environments.
- Multi-Family Housing: Apartment buildings with 4+ stories—great for retrofitting older structures.
- Mixed-Use Buildings: Commercial-residential hybrids (4+ stories)—maximize savings across diverse spaces.
- Government and Tax-Exempt Projects: Schools, universities, hospitals, libraries, municipal buildings, military bases, tribal lands, churches (with energy-as-a-service agreements)—designers can claim deductions here.
- Self-Storage Facilities: Energy-efficient upgrades in growing storage assets could qualify.
Even if you upgraded since 2006, you can claim retroactive deductions without amending past returns.
Wondering if your building makes the cut?
Why It Matters
The EPAct 179D deduction is a game-changer for your bottom line:
- Big Savings: Up to $5.81/ft² in 2025 or $1.88/ft² for pre-2023 projects.
- Retroactive Claims: File for upgrades since 2006 on your current return.
- Simplified Pre-2023 Rules: No labor compliance needed, plus partial deductions for single systems.
- Improved Cash Flow: Offset past or future project costs with zero upfront investment.
Wondering if your past upgrades qualify?
How SIEC Helps
SIEC makes claiming your 179D deduction easy and profitable. Our licensed engineers offer two pathways:
ASHRAE Standards Path (Energy Modeling)
- Ideal for new builds or high-efficiency retrofits.
- Compares to ASHRAE 90.1 standards.
- Advantage: Pre-2023 projects qualify with simpler rules and system-specific deductions.
Alternative Retrofit Path (2023+ Projects)
- Perfect for older, less efficient buildings.
- Measures pre- and post-retrofit energy use.
- Advantage: Easier qualification for outdated systems.
Our Process:
- Site Inspection: We verify your upgrades.
- Energy Modeling: We calculate savings for IRS compliance.
- IRS Documentation: We provide audit-ready reports.
What Sets SIEC Apart:
- Certified Filings: IRS-compliant documentation you can trust.
- Dual-Path Expertise: Maximize savings for any project timeline.
- Document Reconstruction: Recover lost records for past upgrades.
- Proven ROI: Clients see a 3:1 return on certification costs on average.
Frequently Asked Questions
Do I need to amend past tax returns?
No—file retroactive claims since 2006 on your current return.
What if I lost old records?
Our document reconstruction service has you covered.
Can I claim for partial upgrades?
Yes—single systems like lighting qualify.
How long does the process take?
Typically 4-6 weeks, depending on project scope.
What if my savings are below 25%?
We’ll explore all options to maximize your deduction.