MAXIMIZE the 179D Tax Deduction

Energy-Efficient Tax Savings for Commercial Buildings in Washington

TaxTaker works for commercial building owners and designers in Washington to save money through energy-efficient improvements.

About 179D Program

Section 179D offers lucrative tax deductions for businesses investing in energy-efficient improvements in commercial buildings in Washington. Whether you're renovating your existing structure or constructing a new one, there's a potential to claim up $5+ per square foot. And with TaxTaker by your side, every step is simplified.

What Type of Buildings Qualify?

Commercial
Multi-Family
Industrial, Office
Parking Garages
Schools
Churches
Hospitals
Big Box Retail
Hotels

HOW THE 179D TAX DEDUCTION HELPS YOU SAVE

The Benefits of the 179D Tax Deduction in Washington State

Reduce Your Tax Liability
By claiming the 179D deduction, commercial building owners in Washington can reduce their taxable income significantly, freeing up capital that can be reinvested in your business or used for future projects.
Increase Energy Efficiency
Investing in energy-efficient improvements not only lowers operational costs but also qualifies your building for valuable tax deductions under 179D, creating long-term savings and sustainability.
Maximize Profitability
Through strategic energy-efficient upgrades, you can increase your building’s profitability. The 179D deduction enables you to reduce initial project costs while boosting your overall return on investment.

Who in Washington State Can Benefit from the 179D Deduction?

Building Owners

Building owners in Washington who make energy-efficient improvements to their properties can unlock substantial tax savings through the 179D deduction. Whether you own a small office building, a retail space, or a large industrial complex, this tax incentive allows you to reduce your tax burden by implementing environmentally sustainable upgrades. The 179D deduction rewards you for making energy-saving changes such as upgrading to energy-efficient lighting systems, improving HVAC systems for optimized heating and cooling, or installing high-performance insulation that reduces overall energy consumption.

For building owners, the 179D deduction offers a powerful way to recoup a portion of the capital investment required for these upgrades. By qualifying for up to $5.00 per square foot in deductions, owners can realize immediate and long-term cost savings, both in terms of reduced energy bills and tax savings. Additionally, energy-efficient buildings can enhance property values and tenant satisfaction, making them more attractive to environmentally conscious businesses or organizations.

Architects, Engineers, and Designers

Architects and engineers in Washington play a crucial role in the design and construction of energy-efficient buildings, and they too can benefit from the 179D tax deduction. While traditionally the deduction has been claimed by building owners, the 179D deduction also provides unique opportunities for architects, engineers, and contractors working on government-owned properties. When these professionals design energy-efficient features—such as advanced lighting systems, high-efficiency HVAC systems, and building envelopes for government-owned or public-use buildings—they are eligible to claim this deduction for their contributions to reducing energy consumption.

The 179D deduction is a key incentive for architects and engineers looking to promote sustainable design practices. It not only provides financial benefits but also supports your reputation as a leader in green building. Whether you're designing new government buildings or retrofitting existing ones, the 179D deduction offers a chance to claim up to $1.80 per square foot for energy-efficient design. This makes it an attractive incentive for firms looking to increase their project margins while contributing to sustainable development goals.

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What Building Improvements are Eligible under 179D?

Building Envelope
Enhancements to insulation, roofing, windows, and doors.
HVAC Systems
Opting for high-efficiency heating, ventilation, and cooling systems.
Interior Lighting
Installing LED lighting, smart lighting controls, and daylight sensors.
Solar Integration
Harnessing solar power or geothermal systems with cutting-edge technologies.
Hot Water Systems
Efficient water heaters reduce energy usage and can qualify for 179D.
Smart Energy Systems
Automated energy controls optimize usage for energy-efficiency deductions.

Maximizing Your 179D Deduction with Washington-Specific Opportunities

State-Specific 179D Eligibility and Incentives in Washington

In addition to the federal 179D tax deduction, each state offers unique energy-efficiency requirements and local incentives that can further enhance your tax savings. Understanding these state-specific eligibility factors and taking advantage of additional incentives will ensure you maximize your return on energy-efficient improvements.

Washington and Local Energy-Efficiency Incentives

Washington offers a variety of local energy-efficiency incentives that complement the federal 179D tax deduction, helping property owners reduce the costs associated with energy-efficient upgrades.

  1. Tax Abatement for Solar Manufacturers: This program provides tax abatements for businesses involved in the manufacturing of solar energy systems, incentivizing renewable energy production in Washington. [1]
  2. Renewable Energy Sales and Use Tax Exemption: This tax exemption supports the purchase of renewable energy systems by eliminating sales and use taxes on eligible equipment. [2]
  3. Seattle City Light - Commercial Energy Efficiency Rebate Programs: This rebate program offers financial incentives to commercial property owners for energy-efficient upgrades, such as lighting and HVAC improvements. [3]
  4. Evergreen Sustainable Development Standard for Affordable Housing: This standard promotes sustainable development practices in affordable housing projects, helping developers reduce energy costs while improving housing quality. [4]
  5. Seattle City Light - Multifamily New Construction Rebate Program: This rebate program supports energy-efficient design in new multifamily developments, offering financial incentives for green building practices. [5]

City-Specific Green Building Requirements in Washington

Washington State has implemented several city and state-level green building standards designed to promote energy efficiency and sustainable development. These regulations align with the 179D tax deduction, helping property owners meet energy-efficiency goals.

City of Seattle - Sustainable Buildings and Sites Policy

This policy promotes sustainable design and construction practices in Seattle, focusing on reducing the environmental impact of buildings and sites.

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Washington State Building Energy Code

Washington’s statewide energy code sets the baseline for energy efficiency in new and renovated buildings, helping property owners meet federal and state energy standards.

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Green Building and Energy Reduction Standards for State Agencies

Washington state agencies are required to follow green building standards and energy reduction goals, supporting the transition to more sustainable public facilities.

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Seattle City - Solar Permit Requirements

Seattle requires specific permits for solar installations, making it easier for property owners to integrate renewable energy into their buildings.

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King County - Green Building Initiative

King County promotes sustainable development through its Green Building Initiative, providing resources for green building projects that reduce environmental impact.

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Frequently Asked Questions

Talk to an expert. No hard sell, ever. We only want to work with you if it's a fit.
Why TaxTaker?

Our specialized accounting and engineering teams have been securing these tax incentives for over a decade. Our highly specialized experience means your business is positioned for the maximum amount of benefit, with the confidence that you've got an accurate and complete deliverable every time. So far we have completed thousands of studies and saved our clients more than $100 million.

We also respect and want you to keep your existing accountant and bookkeeping relationships. We simply cover specific portions of the federal tax code with the finest precision so your existing teams are well supported and you spend your time doing what you do best: building your company - while getting lots of money back every year!

Has my CPA already taken these energy efficiency incentives for me?

It is possible that your CPA has taken other deductions but not necessarily the 179D Tax Deduction. Incentives like 179D and 45L require an in person site visit from an engineer that most CPA’s are not qualified to perform.

Are the energy incentives in the Inflation Reduction Act legit?  

Yes, the energy incentives in the Inflation Reduction Act (IRA) are legitimate and have been designed to promote investments in renewable energy, energy efficiency, and the transition to a cleaner energy economy.  

The Inflation Reduction Act (IRA) introduced several significant updates to key tax incentives, including the Investment Tax Credit (ITC), Section 179D for energy-efficient commercial buildings, Section 30C for alternative fuel vehicle refueling property, and Section 45L for residential energy-efficient property.

When's the best time to see if I'm eligible for these energy incentives?

The best time to evaluate energy incentives like the 179D deduction, 45L tax credit, and the Investment Tax Credit (ITC) is right at the beginning of your project planning phase. Doing this early allows you to design your project to meet specific requirements, ensuring you qualify for maximum benefits and can plan your budget effectively. It also helps you integrate energy-efficient technologies and renewable energy systems from the start, rather than retrofitting later, and gives you ample time to gather necessary documentation for compliance.

What are TaxTaker’s fees?

Working with TaxTaker is risk free. TaxTaker collects a success fee only if you qualify for a tax credit.

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