Section 179D, Energy Efficiency Tax Deduction for Commercial Buildings (§179D) has become a popular tax planning opportunity allowing the write-off of cost associated with energy-efficient building construction and design.  Unfortunately it expired at the end of 2017 and was not reinstated until the end of 2019.   The good news is congress retroactively reinstated §179D for 2018 and 2019.  This means Designers of government-owned buildings (architects and engineers) can now claim the §179D deduction for projects completed over the past two years by amending their tax return to claim missed deductions up to a $1.80/sf of new or remodeled buildings completed during the same period.

For AEC companies this means §179D can offer an immediate source of cash flow by looking at projects completed during 2020, as well as taking a look back at projects completed in 2018 and 2019.