Green Building Tax Incentives

Federal, state and local governments have created and extended over 2,000 financial incentive programs to reward energy efficiency and the use of alternative energy in the design, construction, and improvement of buildings and homes. Our experts are qualified to certify and secure these lucrative tax and financial benefits.

§45L Residential Energy Tax Credits

The §45L credit is a federal tax incentive for developers of apartments, condos, or spec homes that meet certain energy efficiency standards. Eligible construction also includes substantial rehabilitation. Units must be certified by a qualified professional to be eligible.

Based on current construction trends, many developments already exceed these standards.

Applicable Clients

  • Anyone who has built apartments, condos, or production home developments in the last 4 years
  • New construction or substantial renovations
  • Generally more than 20 units
  • 3 stories or less
  • Available in all 50 states

§179D Commercial Energy Deduction

The §179D tax incentive is a federal deduction for architects, engineers, and design/build contractors that work on public or government buildings. Taxpayers that invest in ground-up construction or in improvements to their existing buildings are also eligible.

Improvements must reduce energy use in one or more of the following categories: a building’s envelope, HVAC, and/or interior lighting systems. Buildings must be certified by a qualified professional to be eligible.

Applicable Clients

  • Designers, architects, general contractors, engineers, electrical and HVAC subcontractors that work on government buildings such as libraries, schools, etc.
  • Any building owner or lessee who constructed commercial improvements since 1/1/2006
  • Building should generally be greater than 40,000 SF