Tax Incentives - Commercial | Alliance to Save Energy

Tax Incentives - Commercial

Built Environment

A lot of energy consumption happens indoors, making buildings an important target for energy efficiency. And the energy efficiency toolkit is getting smarter: emerging innovations around building systems and grid-interactive technologies are combining with proven solutions like high-efficiency windows and insulation to make the promise of decarbonization a reality in the buildings sector. But to get there, we need to do more to push energy efficiency into the market.


Tax Incentives 

Tax policy in the commercial built environment can be a needed incentive to motivate energy efficiency investments. Changes made in the IRA to the permanent 179D tax deduction expand the deduction’s reach and increase the amount available when meeting identified requirements. Components of the new 179D include:

  • Base Deduction: $.50 - $1.00 per sq ft.
  • Bonus Deduction: $2.50 - $5.00 per sq ft. when meeting prevailing wage and apprenticeship requirements.
  • Energy and Power Reductions: 25% or more.
  • Alternative: Energy Use Intensity.
  • Real Estate Investment Trusts (RIETs) are included.
  • Non-Profits/Government may assign the allocation.




Help the Alliance advocate for policies to use energy more efficiently – supporting job creation, reduced emissions, and lower costs. Contact your member of Congress.


Energy efficiency is smart, nonpartisan, and practical. So are we. Our strength comes from an unparalleled group of Alliance Associates working collaboratively under the Alliance umbrella to pave the way for energy efficiency gains.


The power of efficiency is in your hands. Supporting the Alliance means supporting a vision for using energy more productively to achieve economic growth, a cleaner environment, and greater energy security, affordability, and reliability.