LED bulbs use 75% less energy than incandescent bulbs — DOE
    Turning off lights when leaving saves $30-50/year per household — ENERGY STAR
    Standby power ('vampire load') can account for 5-10% of home energy use — DOE
    ENERGY STAR certified TVs use 25% less energy than standard models
    Programmable thermostats can save about 10% on heating/cooling — DOE
    Sealing air leaks can save 10-20% on heating and cooling costs — ENERGY STAR
    Heat pumps can reduce heating energy use by 50% vs. electric resistance — DOE
    Ceiling fans allow you to raise AC settings 4°F with no comfort loss — DOE
    Heating water accounts for about 18% of home energy use — DOE
    Low-flow showerheads save 2,700 gallons/year for a family of four — EPA
    Washing clothes in cold water can save $60+/year on water heating — ENERGY STAR
    Fixing a leaky faucet can save 3,000+ gallons/year — EPA
    ENERGY STAR refrigerators use 9% less energy than standard models
    Clean refrigerator coils annually for optimal efficiency — DOE
    Air-drying dishes instead of heat-dry saves 15-50% on dishwasher energy — DOE
    Proper attic insulation can cut heating/cooling costs by 15% — ENERGY STAR
    Windows can account for 25-30% of home heating/cooling energy use — DOE
    Window film can reduce solar heat gain by up to 70% — DOE
    Average US home solar system offsets 3-4 tons of CO₂ annually — EPA
    Solar panel costs have dropped 70%+ over the past decade — SEIA
    EVs cost about 60% less to fuel than gas vehicles — DOE
    Proper tire inflation improves gas mileage by 0.6% on average — DOE
    The average US household spends $2,000+/year on energy — EIA
    ENERGY STAR products have saved Americans $500 billion on energy bills
    LED bulbs use 75% less energy than incandescent bulbs — DOE
    Turning off lights when leaving saves $30-50/year per household — ENERGY STAR
    Standby power ('vampire load') can account for 5-10% of home energy use — DOE
    ENERGY STAR certified TVs use 25% less energy than standard models
    Programmable thermostats can save about 10% on heating/cooling — DOE
    Sealing air leaks can save 10-20% on heating and cooling costs — ENERGY STAR
    Heat pumps can reduce heating energy use by 50% vs. electric resistance — DOE
    Ceiling fans allow you to raise AC settings 4°F with no comfort loss — DOE
    Heating water accounts for about 18% of home energy use — DOE
    Low-flow showerheads save 2,700 gallons/year for a family of four — EPA
    Washing clothes in cold water can save $60+/year on water heating — ENERGY STAR
    Fixing a leaky faucet can save 3,000+ gallons/year — EPA
    ENERGY STAR refrigerators use 9% less energy than standard models
    Clean refrigerator coils annually for optimal efficiency — DOE
    Air-drying dishes instead of heat-dry saves 15-50% on dishwasher energy — DOE
    Proper attic insulation can cut heating/cooling costs by 15% — ENERGY STAR
    Windows can account for 25-30% of home heating/cooling energy use — DOE
    Window film can reduce solar heat gain by up to 70% — DOE
    Average US home solar system offsets 3-4 tons of CO₂ annually — EPA
    Solar panel costs have dropped 70%+ over the past decade — SEIA
    EVs cost about 60% less to fuel than gas vehicles — DOE
    Proper tire inflation improves gas mileage by 0.6% on average — DOE
    The average US household spends $2,000+/year on energy — EIA
    ENERGY STAR products have saved Americans $500 billion on energy bills
    LED bulbs use 75% less energy than incandescent bulbs — DOE
    Turning off lights when leaving saves $30-50/year per household — ENERGY STAR
    Standby power ('vampire load') can account for 5-10% of home energy use — DOE
    ENERGY STAR certified TVs use 25% less energy than standard models
    Programmable thermostats can save about 10% on heating/cooling — DOE
    Sealing air leaks can save 10-20% on heating and cooling costs — ENERGY STAR
    Heat pumps can reduce heating energy use by 50% vs. electric resistance — DOE
    Ceiling fans allow you to raise AC settings 4°F with no comfort loss — DOE
    Heating water accounts for about 18% of home energy use — DOE
    Low-flow showerheads save 2,700 gallons/year for a family of four — EPA
    Washing clothes in cold water can save $60+/year on water heating — ENERGY STAR
    Fixing a leaky faucet can save 3,000+ gallons/year — EPA
    ENERGY STAR refrigerators use 9% less energy than standard models
    Clean refrigerator coils annually for optimal efficiency — DOE
    Air-drying dishes instead of heat-dry saves 15-50% on dishwasher energy — DOE
    Proper attic insulation can cut heating/cooling costs by 15% — ENERGY STAR
    Windows can account for 25-30% of home heating/cooling energy use — DOE
    Window film can reduce solar heat gain by up to 70% — DOE
    Average US home solar system offsets 3-4 tons of CO₂ annually — EPA
    Solar panel costs have dropped 70%+ over the past decade — SEIA
    EVs cost about 60% less to fuel than gas vehicles — DOE
    Proper tire inflation improves gas mileage by 0.6% on average — DOE
    The average US household spends $2,000+/year on energy — EIA
    ENERGY STAR products have saved Americans $500 billion on energy bills
    Expired
    USA
    General

    179D Energy Efficient Commercial Buildings Deduction

    Federal tax deduction for energy-efficient commercial building systems (lighting, HVAC, hot water, envelope) — terminated for property whose construction begins after June 30, 2026.

    Available Amount

    per IRS inflation-adjusted schedule (sliding scale per square foot based on modeled energy savings, with higher amounts for projects meeting prevailing wage and apprenticeship requirements)

    Start Date

    Not published

    End Date

    2026-06-30 (per IRS guidance: the deduction "will not be allowed with respect to any property the construction of which begins after June 30, 2026")

    Eligibility

    Owners of qualifying commercial buildings (and residential buildings 4+ stories); designers of systems in buildings owned by specified tax-exempt entities via allocation

    Eligible Upgrades & Scope

    Commercial

    Eligibility & requirements. Section 179D allowed a federal tax deduction for energy-efficient commercial building property — interior lighting, heating/cooling/ventilation and hot water systems, and the building envelope — certified to reduce energy and power costs by at least 25% relative to the applicable ASHRAE 90.1 reference standard. Eligible claimants included commercial building owners and, for buildings owned by specified tax-exempt entities (governments, tribes, nonprofits), the designers primarily responsible for the systems, via an allocation letter.

    What you get. The deduction was calculated per square foot on a sliding scale tied to modeled energy savings, with substantially higher amounts for projects meeting prevailing wage and apprenticeship requirements. The IRS publishes inflation-adjusted figures for each tax year.

    Deadlines. Under the One Big Beautiful Bill Act (Public Law 119-21), the deduction "will not be allowed with respect to any property the construction of which begins after June 30, 2026," per IRS FAQs announced in IR-2025-86. That date has passed: no new projects can qualify.

    How it works. Historically, claimants obtained third-party certification and energy modeling of the building's systems, then claimed the deduction on their tax return (designers used Form 7205). Projects that began construction on or before June 30, 2026 may still qualify when placed in service, and designers may still pursue allocated deductions for eligible prior projects within open tax years.

    Important notes. This entry is retained for reference because 179D was a major commercial incentive and many existing projects remain in the pipeline. It is not available for new construction starting now. Building owners and A&E firms should consult a tax professional about remaining eligibility for grandfathered projects.

    Program details change — verify current rules on the official program page before applying.

    Ready to Apply?

    Visit the official program website to check your eligibility, find application forms, and get the most up-to-date information.

    Visit Official Program Site

    Other Programs You May Qualify For

    Expired

    Inflation Reduction Act Tax Credits (25C & 25D)

    Federal tax credits for energy-efficient home improvements. NOTE: These credits expire December 31, 2025, due to the OBBBA legislation.

    Up to $3,200/year (25C) + 30% uncapped (25D)

    Active

    High-Efficiency Electric Home Rebate Act (HEEHRA)

    Point-of-sale rebates up to $14,000 for income-qualified households electrifying their homes.

    Up to $14,000 per household

    Important: Educational Purposes OnlyThe guides, tools, cost estimates, and ROI calculators provided on EnergyBS.com are for informational and educational purposes only. They do not constitute certified financial, tax, or professional engineering advice. Energy costs, government rebates, and installation fees vary significantly by location and are subject to change. Always consult with certified local professionals before undertaking home energy projects or making financial commitments.