Energy Efficiency Tax Deductions Threatened

Energy Efficiency is threatened by the end of EPAct 179D

The new Senate Finance bill, working its way through congress, removes a key provision that helps support energy efficiency retrofits and new construction. Renewable energy projects are often paid for through the sale of the output (offtake) of the project, over time. Energy efficiency must 'prove' that reductions in energy bills is attributable to energy efficiency projects. As this is sometimes a more difficult bar, the EPAct tax deductions can help make the difference for building owners.

The 179D commercial buildings energy efficiency tax deduction primarily enables building owners to claim a tax deduction for installing qualifying systems and buildings. Tenants may be eligible if they make construction expenditures. If the system or building is installed on federal, state, or local government property, the deduction may be taken by the person primarily responsible for the system’s design.

A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE. Deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building envelope, or heating and cooling systems that partially qualify be meeting certain target levels or through the interim lighting rule.

Full description is available at energy.gov,


The following is from EnergyTaxSavers.com.  Here's how you can help.  Let your Senator know whey advocating for 179D's inclusion in Tax Reform and why it is important to your company and/or to you.

  1. Edit then Fax the draft letter(see below) to the Senators' Offices and/or
  2. Edit then Email the draft letter to the Senators' Key Staffers on Tax and/or
  3. Last but not least, if your company resides or does business in a Senators' district please edit and copy the draft letter into the Senators' contact form.

Below is a list of the names and contact info for the key Republicans on the Senate Finance Committee and their key staffers:

  Senator Telephone Fax Key Staffer
GA Sen. Isakson 1-202-224-3643 1-202-228-0724 Monica McGuire
IA Sen. Grassley 1-202-224-3744 1-202-224-6020 Chris Conlin
ID Sen. Crapo 1-202-224-6142 1-202-224-1375 Mike Quickel
KS Sen. Roberts 1-202-224-4774 1-202-224-3514 Chris Allen
LA Sen. Cassidy 1-202-224-5824 1-202-224-9735 Christopher Gillott
NC Sen. Burr 1-202-224-3154 1-202-224-2981 Robert Sneeden
NV Sen. Heller 1-202-224-6244 1-202-224-6753 Joseph Boddicher
OH Sen. Portman 1-202-224-3353 1-202-224-9075 Zachary Rudisill
PA Sen. Toomey 1-202-224-4254 1-202-224-0284 Randy Herndon
SC Sen. Scott 1-202-224-6121 1-202-224-5143 Charles Cogar
SD Sen. Thune 1-202-224-2321 1-202-224-5429 Mark Warren
TX Sen. Cornyn 1-202-224-2934 1-202-224-2856 Andrew Siracuse
UT Sen. Hatch 1-202-224-5251 1-202-224-6331 James Williams
WY Sen. Enzi 1-202-224-3424 1-202-224-0359 Bart Massey