§179D — Energy Efficient Commercial Buildings Deduction
Up to $5.94 per square foot deduction for energy-efficient HVAC, lighting, and envelope improvements in commercial buildings. SUNSET WARNING: OBBBA terminates §179D for construction beginning after 6/30/2026.
Check an Address — Free Snapshot
Compare the geocoded point for a Chicago address with the boundary used to screen §179D — Energy Efficient Commercial Buildings Deduction. A match is a location signal; review the current program source for the boundary's role and remaining criteria.
Published criteria — confirm with Internal Revenue Service
- Commercial building with qualifying energy-efficiency improvements
- Must meet ASHRAE-referenced energy savings thresholds
§179D — Energy Efficient Commercial Buildings Deduction is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · Up to $5.94/sf federal deduction
Most recently published round offered Up to $5.94/sf federal deduction. (No round currently open as of 2026-08-09.)
- +Up to $5.94 per square foot federal deduction
- +Available for HVAC, lighting, and building envelope improvements
- +Designers of tax-exempt-owned buildings can claim allocated deduction
Application timing can change. Verify current availability and instructions with the administering agency before relying on this program.
Verify current status on the official source- Qualified energy modeler certification
- Building plans and energy model
- Allocation letter (if designer claim on tax-exempt building)
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 829-1040
- Web
- Visit site ↗
Last verified 2026-08-09
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
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