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With energy and labor costs on the rise and building performance under greater scrutiny, property management groups are in a strong position to capture value from federal energy tax incentives, but the clock is ticking.
Both Section 179D and 45L are now scheduled to end in 2026, following changes under the Big Beautiful Bill. If your team is planning system upgrades, renovations, or new development, there’s still time to benefit but you’ll need to act before the cutoff.
Whether you manage multifamily housing, commercial offices, retail or mixed-use buildings, these incentives can unlock real savings when applied strategically. Property managers involved in project planning, design coordination, or vendor selection often play a key role in determining eligibility and securing these benefits.
Energy-efficient upgrades have long delivered long-term cost savings and happier tenants. But now, they also deliver direct tax advantages that can offset capital expenditures and speed up ROI.
If you’re involved in project scoping, systems integration, or working with contractors and engineers, you may already be in the perfect position to support and even claim certain tax incentives.
Key update: The 179D program is officially ending. Projects that don’t start construction before June 30, 2026 will no longer be eligible, so planning ahead is critical.
Key update: Like 179D, the 45L credit will terminate after mid-2026. Projects nearing completion should aim to meet certification and leasing/sale deadlines before June 30, 2026.
Absolutely. If your team is actively engaged in project oversight, from coordinating design to managing system upgrades, you may qualify for credits or help your ownership group do so.
For commercial projects, property managers can sometimes be recognized as the "designer of record" for 179D if they influence and document energy-efficient systems integration.
For residential properties, involvement in the build or renovation process may support 45L eligibility, particularly if you help coordinate required certifications and reporting.
These incentives can’t be retroactively claimed without proper planning. To benefit, get involved early in the design and procurement process so you can ensure eligibility and compliance. There also may be opportunities for development or upgrades you’ve already completed, so be sure to review prior year projects as part of this effort.
By shaping the project scope and vendor selection upfront, you can turn routine upgrades into bottom-line wins for your ownership group or portfolio.
The window to take advantage of these powerful energy incentives is closing. Both 179D and 45L are set to expire in mid-2026, making early-stage planning more important than ever.
If your team is managing upgrades, tenant improvements, or ground-up construction, now is the time to evaluate which projects can qualify, and take action before it’s too late.
Book a call with TaxTaker today to get clarity on what qualifies, what deadlines matter, and how to make these incentives part of your 2025–2026 capital planning strategy.
Abby Massey is an expert in applying tax incentives for clean energy initiatives. With a B.S. in Civil Engineering from Purdue University and licenses in 46 states plus the District of Columbia, Abby offers significant expertise to her role at TaxTaker as the Vice President of Energy Incentives. Her experience includes certifying over 1,500 179D deductions, achieving more than $100 million in savings for clients. As a LEED Accredited Professional, Abby is dedicated to sustainable building practices. In her role at TaxTaker, she focuses on optimizing energy incentives for clients by leveraging her in-depth understanding of the 179D program, aiming to improve business sustainability and efficiency.
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