Featured Projects

Explore our featured projects showcasing how companies successfully capture R&D tax credits, along with select implementations of energy incentives like 179D, 45L, ITC, and cost segregation where applicable. These real-world examples highlight how businesses across software, manufacturing, and construction identify qualifying activities, document technical work, and unlock meaningful tax savings. See how a structured, defensible approach can reduce tax liability, improve cash flow, and maximize return on investment.
Texas

Underground Autonomous Delivery Startup Secures $144K in R&D Credits for Hyperlogistics Network

An Austin, Texas-based deep-tech logistics startup is engineering an entirely new category of urban delivery infrastructure: a network of underground pipes through which autonomous robotic pods travel at high speeds to deliver food, groceries, and everyday goods directly to pickup kiosks, drive-through windows, and building portals all within minutes, at near-zero emissions, and for a fraction of the cost of traditional last-mile delivery. The company has successfully deployed its system at commercial quick-service restaurant locations and piloted a multi-block urban underground network, proving that below-ground autonomous logistics can be rapidly installed and commercially operated at scale. TaxTaker was engaged to identify qualifying R&D activities embedded in the company's ambitious engineering program.

Texas

Synthetic Biology Startup Converts Carbon Waste into Value with $598K R&D Credits

Founded in Houston, Texas, a pioneering synthetic biology company is on a mission to decarbonize heavy industry by engineering microorganisms inspired by extremophiles that thrive in harsh environments to use carbon dioxide and methane as feedstocks for producing industrial chemicals, sustainable aviation fuel, and other high-value products. The company works at the intersection of biotechnology, chemical manufacturing, and clean energy, partnering with major energy and mining corporations to develop scalable biomanufacturing solutions that reduce carbon emissions while creating new revenue streams. With R&D teams conducting cutting-edge genetic engineering, pilot plant development, and bioprocess optimization work across multiple verticals, TaxTaker was engaged to evaluate the company's eligibility for the R&D Tax Credit.

Texas

Real Estate AI Platform Claims $225K in R&D Credits for Site Feasibility Engine

A Dallas, Texas-based real estate technology company has built the leading AI-powered platform for real estate development feasibility analysis, enabling architects, developers, and general contractors to generate complete site plans with real-time insights into design viability, construction costs, and zoning constraints in milliseconds rather than weeks. The company's platform uses proprietary computational algorithms to evaluate hundreds of design configurations simultaneously, helping development teams kill bad deals early, reduce site planning risk, and maximize the potential of every land parcel. With over 650 real estate deals evaluated on the platform every week and a roster of clients that includes the largest multifamily developers and logistics real estate companies in the U.S., TaxTaker identified the company's continuous software engineering work as a strong candidate for the R&D Tax Credit.

New York, NY

NYC Multi-Family Renovation Delivers Energy Efficiency Upgrades eligible for $4 per square foot in federal incentives

A multi-family building in New York City underwent a $30 million renovation focused on enhancing the building envelope to improve energy efficiency and sustainability. The project included upgrades to insulation, windows, and exterior materials, reducing heat loss and optimizing the building’s overall performance.

Austin, TX

Multi-Family Construction in Texas Yields 179D, 45L, and Cost Segregation Incentives

A newly constructed 245,000-square-foot multifamily development in Austin, TX, was completed in July 2023 with a total project cost of $40.5 million. The property consists of 183 residential units, incorporating energy-efficient features and solar energy systems to enhance sustainability.

Oakland, MI

Michigan LED Designer Claimed Over $1.2M for a Hospital Lighting Retrofit

A hospital renovation in Oakland, MI, was completed in September 2023 with a total project cost of $1.5 million. As part of the renovation, the hospital upgraded its lighting system to new energy-efficient LED fixtures, improving energy performance and reducing long-term operational costs. Since the hospital is a nonprofit entity and unable to directly claim tax incentives, the LED designer responsible for the project was allocated the 179D deduction, allowing them to benefit from the energy efficiency improvements.

Sedgwick, KS

Kansas Government Entity Expansion Yields $504K in 179D Deductions for Architect

A 169,000-square-foot addition and renovation of a K-12 public school in Sedgwick, KS, was completed in January 2024 as part of an effort to modernize and expand the school’s infrastructure. The project incorporated energy-efficient upgrades to the lighting, HVAC, and building envelope to enhance sustainability and reduce long-term energy costs for the school district.

Andover, KS

Kansas Engineering Firm Secures $77K in 179D Deductions for Municipal Fire Station with IRA Benefits

A new 16,000-square-foot municipal fire station in Andover, KS, was designed with energy efficiency at the forefront, incorporating high-performance HVAC, lighting, and building envelope solutions to reduce long-term operating costs. The engineering firm responsible for the project played a pivotal role in ensuring the station exceeded energy efficiency benchmarks, ultimately qualifying for the Section 179D deduction, expanded under the Inflation Reduction Act (IRA).

Lafayette, IN

Indiana Auto Dealership Secures 179D Incentives for New Construction

A 40,000-square-foot auto dealership in Lafayette, IN, was newly constructed and completed in August 2024, with a total project cost of $8.2 million. By incorporating energy-efficient design elements from the start, the dealership qualified for Section 179D, securing valuable tax deductions that improved cash flow and accelerated return on investment. These upgrades not only reduced long-term energy costs but also positioned the dealership as a more sustainable and cost-efficient operation.

LaGrange, IL

Illinois Medical Nonprofit’s Lighting Upgrade Secures $360K in 179D Deductions for LED Designer Under the IRA

A 600,000-square-foot medical nonprofit in Illinois recently completed a $360,000 lighting system upgrade, replacing outdated fixtures with a modern, energy-efficient LED design. The improvements not only enhanced energy performance and cost savings for the hospital but also triggered eligibility for the Section 179D deduction, expanded under the Inflation Reduction Act (IRA).

Texas

Humanoid Robotics Manufacturer Claims $347K in R&D Tax Credits for Apollo Development

Founded out of a leading robotics research laboratory and bolstered by partnerships with NASA and major industrial corporations, an Austin, Texas-based robotics company has spent nearly a decade developing general-purpose humanoid robots designed to work safely alongside humans in warehouses, manufacturing facilities, and logistics environments. The company's flagship humanoid robot is the result of engineering more than a dozen distinct robotic systems ranging from exoskeletons to bipedal platforms and integrating advanced AI, custom actuators, and novel motor control systems into a human-scale platform capable of lifting, navigating, and collaborating in dynamic real-world settings. TaxTaker was engaged to evaluate the company's extensive R&D expenditures and identify eligible credits to support continued development and commercialization.

Houston, TX

Houston Property Management Group Secures $136K in 179D Deductions for HVAC Renovation

A Houston-based property management group recently completed an HVAC renovation for one of its office properties, investing $185,000 to upgrade its heating, ventilation, and air conditioning systems. By enhancing energy efficiency through modernized HVAC technology, the company not only reduced operational costs but also qualified for the Section 179D deduction, designed to reward energy-saving improvements in commercial buildings.

Utah

Environmental Data Platform Earns $222K in R&D Credits for API and Analytics Development

A Salt Lake City, Utah-based Public Benefit Corporation and certified B Corp has built the world's most comprehensive real-time and historical weather and environmental data platform, aggregating observations from over 170,000 stations across more than 320 networks worldwide and delivering them via a lightning-fast API to government agencies, utilities, emergency management organizations, aviation operators, and commercial businesses. The company's platform underpins critical public safety and operational decision-making across dozens of industries, and its engineering team continuously develops new data ingestion pipelines, quality control algorithms, visualization tools, and push-streaming services to expand the platform's capabilities. TaxTaker was engaged to assess whether the company's ongoing software and data engineering work met the criteria for federal and state R&D Tax Credits.

California

Defense AI Autonomy Startup Captures $168K in R&D Credits for Multi-System Coordination Platform

A Los Angeles-based defense technology startup founded by veterans of the aerospace, defense innovation, and autonomous systems industries has built a hardware-agnostic AI intelligence stack that enables autonomous teaming, real-time adaptive decision-making, and multi-sensor fusion across heterogeneous fleets of unmanned aerial, ground, and maritime systems. The company's software operates as a cross-platform intelligence layer, allowing military and commercial operators to define mission intent and have their robotic systems coordinate, learn, and adapt without manual oversight capabilities that have been proven through active U.S. Department of Defense contract work and exercises with multiple service branches. TaxTaker evaluated the company's engineering activities to identify qualifying R&D work for federal and state tax credit purposes.

Fort Collins, CO

Colorado High School HVAC Renovation Earns $181K in 179D Deductions for Engineering Firm

A 288,000-square-foot high school in Fort Collins, CO, recently completed an HVAC renovation aimed at improving energy efficiency and reducing operational costs. By upgrading to a modern, high-performance heating, ventilation, and air conditioning system, the school achieved a 27% reduction in energy consumption compared to the ASHRAE 90.1 standard, resulting in significant cost savings and sustainability benefits for the district.

Arizona

Clinical-Stage Vascular Medical Device Company Secures $713K in R&D Credits

A Tempe, Arizona-based clinical-stage medical device and biopharmaceutical company is pioneering a novel endovascular treatment designed to stabilize and prevent the rupture of mid-sized abdominal aortic aneurysms a condition affecting over one million Americans annually, with no currently approved therapeutic option for smaller aneurysms beyond watchful waiting. The company's proprietary catheter-based delivery system introduces a stabilizing compound directly to the vessel wall, using a bioactive molecule that cross-links elastin and collagen to strengthen the aortic tissue and inhibit further disease progression. With the product advancing through multiple clinical trial phases and having received FDA Breakthrough Therapy designation, the company's engineering and scientific teams are deeply engaged in qualified R&D work making it an ideal candidate for TaxTaker's R&D credit analysis.

California

AI-Powered Clean Energy Platform Captures Federal & State R&D Credits

A cutting-edge clean energy software company headquartered in the San Francisco Bay Area has built proprietary artificial intelligence systems that optimize the buying, selling, and storage of renewable energy across major U.S. wholesale electricity markets. The company's platform continuously forecasts energy supply, demand, and pricing in real time enabling commercial and industrial clients to reduce energy costs, achieve carbon-reduction targets, and participate in increasingly complex grid markets with zero manual effort. As the company scaled its R&D activities to improve model accuracy and expand into new energy markets, it engaged TaxTaker to evaluate whether its ongoing engineering and data-science work qualified for the federal and state Research & Development Tax Credit.

Texas

Active & Travel Insurtech Startup Secures $221K in R&D Credits for Embedded Insurance Platform

An Austin, Texas-based insurtech startup is redefining insurance for the active and travel economy by offering on-demand, embedded insurance products including injury coverage, trip protection, and cancel-for-any-reason guarantees directly integrated into the booking flows of adventure sports organizations, ski resorts, cycling associations, and travel platforms. The company's technology platform enables experience-based businesses to offer seamless insurance coverage at checkout, protecting revenue from cancellations while giving customers meaningful financial security. With partnerships spanning major ski passes, outdoor associations, and travel operators, the company has built a sophisticated data-driven insurance technology stack that TaxTaker identified as containing substantial qualifying R&D activity.

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Frequently Asked Questions

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What is the 179D tax deduction for energy-efficient buildings?

The Section 179D tax deduction is a federal incentive that allows building owners and certain designers to deduct the cost of qualifying energy-efficient improvements made to commercial or government buildings. It offers up to $5.81 per square foot for improvements to HVAC, lighting, or the building envelope that meet required energy savings thresholds.

This deduction is available in all 50 states and has been widely used by building owners, architects, and engineers working on projects ranging from public schools and office buildings to warehouses and multifamily developments. Whether your project is in New York, Texas, California, or anywhere else in the U.S., 179D can offer significant tax savings for energy-efficient construction or retrofits.

Who qualifies for the 179D deduction in 2025?

In 2025, two main groups may qualify for the 179D deduction: (1) commercial building owners who invest in energy-efficient upgrades, and (2) designers—such as architects, engineers, and contractors—who work on qualifying energy systems in government-owned buildings.

The deduction is available nationwide, and eligibility does not depend on the building’s location but rather on the nature of the project and the improvements installed. Whether you're developing a private warehouse in Arizona or designing a government facility in Illinois, you may be eligible to claim the deduction if the project meets the energy efficiency standards set by the IRS and Department of Energy.

How much is the 179D deduction per square foot in 2025?

As of 2025, the 179D deduction ranges from $0.58 to $1.16 per square foot without prevailing wage and apprenticeship compliance, and up to $2.69 to $5.81 per square foot if those labor standards are met. The exact amount depends on the level of energy savings achieved compared to ASHRAE benchmarks and whether the project meets labor compliance thresholds outlined in the Inflation Reduction Act.
These rates apply uniformly across all U.S. jurisdictions, offering substantial incentives for commercial energy-efficient upgrades. For example, a 100,000-square-foot facility with qualifying systems could generate between $58,000 and $581,000 in deductions—whether located in Florida, Ohio, Oregon, or anywhere else in the country.

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.

What are the prevailing wage and apprenticeship (PWA) requirements for 179D?

Prevailing wage and apprenticeship (PWA) requirements are not mandatory to claim the 179D deduction, but they do significantly increase the available benefit. Under the Inflation Reduction Act, projects that meet these labor standards can qualify for the full deduction of up to $5.81 per square foot in 2025.

If these requirements are not met, the deduction is still available, just at a lower rate, ranging from $0.58 to $1.16 per square foot, depending on energy savings achieved. This allows many projects across the U.S. from office retrofits to warehouse builds—to still benefit meaningfully, even without full labor compliance.

Can architects, engineers, and contractors claim 179D on government projects?

Yes. Architects, engineers, and other design professionals who contribute to energy-efficient systems in government-owned buildings (such as schools, courthouses, and municipal facilities) can claim the 179D deduction if they receive a formal allocation letter from the government entity.

This benefit applies nationwide and is particularly valuable for firms that routinely work on public-sector projects. Whether you’re based in Washington state or working on federal projects in Washington, D.C., claiming 179D can help recover costs and improve cash flow—especially for firms participating in state or city green building initiatives.

What is an allocation letter for the 179D deduction?

An allocation letter is a signed document from a government agency that transfers the 179D deduction to the qualifying designer of a public building project. This typically includes architects, engineers, energy consultants, or design-build contractors responsible for the energy systems.

To claim the deduction, the designer must obtain the letter from the government entity that owns the building, confirming their role in designing the qualifying energy-efficient features. This process is standardized across the U.S., whether the project is a public school in Pennsylvania or a state courthouse in Nevada. The letter is a key compliance document and must be retained for IRS documentation.

What does a 179D energy study involve?

A 179D study is a technical report that verifies the energy efficiency of a building’s systems to determine eligibility for the deduction. It includes computer-based energy modeling, a site visit to confirm installation, and final certification by a qualified third-party professional (such as a licensed engineer).

The study compares the building’s performance against a baseline standard set by ASHRAE, typically using tools like eQUEST or EnergyPlus. This process is required regardless of the project’s location—whether you're upgrading a hospital in Michigan or constructing a government facility in Utah.

Can I claim both 179D and Cost Segregation on the same building?

Yes, 179D and Cost Segregation can both be claimed on the same property, as they apply to different parts of the tax code. 179D covers energy-efficient systems like lighting, HVAC, and insulation, while Cost Segregation accelerates depreciation for specific components such as flooring, cabinetry, or specialty electrical systems.

This combination is commonly used nationwide by commercial real estate owners looking to reduce tax liability and improve cash flow. Whether you own a medical office in Arizona or a logistics center in Indiana, these strategies can work together to maximize your benefit—just be sure to coordinate with your tax advisor to avoid overlap in deductions.

Does 179D apply to multifamily buildings?

Yes, multifamily buildings may qualify for the 179D deduction if they are four stories or more above grade and are considered commercial under the IRS guidelines. These buildings must include eligible energy-saving systems and meet specific energy reduction targets compared to a baseline standard.

Multifamily developers across the U.S.—from high-rise apartments in Chicago to mixed-use buildings in Atlanta—can benefit from 179D, particularly for projects incorporating efficient HVAC, envelope insulation, or LED lighting. Lower-rise residential projects, however, may instead be eligible for the 45L tax credit.

Can TaxTaker help with the 179D deduction?

Yes! TaxTaker specializes in helping building owners, designers, and developers claim the 179D deduction. We provide free estimates, manage the entire energy study and allocation process, and work directly with your CPA or tax team to ensure full compliance.

Our team has helped clients across the country—from New York to California—maximize their savings through strategic use of 179D, often in combination with other incentives like the 45L tax credit and cost segregation studies. Whether you're working on a new build or a retrofit, we’ll help you uncover the full value of your energy-efficient upgrades.

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