Section 179-D Energy Tax Credits: What Business Owners Should Know

Business energy tax credits are a dollar-for-dollar reduction on a commercial organization's energy bills

Talk to a Tax Specialist Today

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Section 179D:
7 Energy Tax Credits That May Benefit Your Business

  1. Federal Investment Tax Credit
  2. Alcohol Fuels Credit
  3. Accelerated Depreciation
  4. Alternative Motor Vehicle Credit
  5. Business Energy Efficiency Tax Credit
  6. Energy Efficient Commercial Building Tax Credit
  7. Rehabilitation, Energy, and Reforestation Investment Credit
Energy Tax Credits

Recent Updates to Section 179 Energy Credits

The Tax Cut and Jobs Act (TCJA) added several provisions to the IRS code including the Section 179 Deduction, which allows business owners to take a bonus depreciation of 100% for qualified assets in the first year (as defined by a cost segregation study) rather than depreciating the assets over a longer period of time. This 100% bonus deduction is only available until 2022 and will then be slowly phased out until it is completely gone by 2027D.

Benefits of Energy Tax Credits

Many business owners are surprised to learn of the compelling tax savings Energy Credits can offer. 

Below is a list of three of the most prominent benefits.

Cash flow

Generates immediate increase in cash flow through accelerated depreciation tax deductions.

Write off

Quantifies property’s major components and leasehold improvements so they can be written off in year 1.


Provides an independent third-party 179-D review and analysis that will withstand IRS review.

Our team of energy tax credit experts can help you if your CPA has questions.

There are so many unique fact patterns and situations that can have a tax impact on how the credits will flow through on your tax return. A CPA generally does not know enough about energy tax credits to truly understand how this works. Using a firm with tax experts on staff will.  Call us today at 212-635-9500 to talk to an energy tax credit expert today.

Check Out Our Latest Blog Posts

NY COVID-19 Capital Costs Tax Credit Program 

New York State Governor Kathy Hochul announced that applications are now being accepted from small businesses with 100 or fewer employees for a new tax credit program that will allow them to recoup costs incurred to increase COVID-19 safety during 2021 and 2022. Applications for the COVID-19 Capital Costs Tax Credit Program will be accepted from businesses …

NY COVID-19 Capital Costs Tax Credit Program  Read More »

Myths about the ERC

The employee retention tax credit is overlooked by many organizations that might be eligible to take advantage of the credit. The ERC applies for 2020 and 2021 and there is a three-year window to file an amended return. Since this credit applies to quarterly activities and ends up being amended 941 or the quarterly tax …

Myths about the ERC Read More »

NEW! Inflation Reduction Act changes 179D building deduction

The Section 179D Energy Efficient Commercial Building Deduction provides a deduction of up to $1.88 per square foot for both building owners who construct new or renovate existing energy efficient buildings as well as designers of government-owned buildings. The Inflation Reduction Act of 2022 recently signed into law significantly changes the 179D deduction. The existing …

NEW! Inflation Reduction Act changes 179D building deduction Read More »

Scroll to Top