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.

The new construction qualified for the 179D energy-efficient commercial building deduction, allowing the dealership to secure $229,000 in tax savings. To achieve this, our team conducted a comprehensive end-to-end study, including energy modeling, a detailed site visit, and a full certification process to ensure compliance with IRS requirements. By analyzing lighting, HVAC, and building envelope upgrades, we were able to validate the dealership’s eligibility and maximize its deduction.

During initial conversations with the building owner, TaxTaker also identified additional 179D eligibility in other buildings owned by the dealer. Past renovation and construction projects at three other buildings were analyzed, further increasing the overall benefit from the 179D study. This case highlights how businesses in the automotive sector can leverage 179D incentives not only for new construction but also for past energy-efficient improvements, helping them recoup costs and accelerate ROI.