Tell me about your commercial building. I'll calculate exactly what you qualify for — 179D deductions, Investment Tax Credits, and state-specific rebates.
The Section 179D commercial buildings energy efficiency tax deduction allows building owners to deduct up to $5.00/sqft for energy-efficient improvements. Expanded by the Inflation Reduction Act in 2022. Eligible improvements include HVAC, lighting, and building envelope upgrades that meet specific efficiency thresholds.
$0.50–$5.00/sqft Federal CommercialSection 48 ITC provides a 30% tax credit on the installed cost of eligible clean energy systems — solar PV, battery storage, fuel cells, and more. Commercial property owners can take the full credit against federal taxes. Prevailing wage requirements apply for large systems to get the full 30%.
30% Credit Federal Solar + StorageGovernment buildings, nonprofits, and schools can now pass the 179D deduction to the designers and engineers (architects, MEP engineers, contractors) who made the improvements. IRA 2022 expanded this to include nonprofits and tribal governments — creating a major opportunity for A&E firms.
Tax-Exempt Orgs A&E Firms IRA ExpandedFor multifamily residential buildings, Section 45L provides a $500–$2,500/unit tax credit for energy-efficient new construction and substantial renovations that meet ENERGY STAR certification. Buildings certified to DOE Zero Energy Ready Home standards qualify for the highest tier.
$500–$2,500/unit Multifamily New ConstructionCommercial PACE (Property Assessed Clean Energy) financing lets building owners fund energy upgrades with zero upfront cost, repaying via a property tax assessment. Available in 30+ states. Eligible for solar, HVAC, lighting, envelope, and storage projects.
Zero Upfront 30+ States Off-Balance SheetMost states have their own energy efficiency programs layered on top of federal credits. California's TECH Clean CA offers up to $4,500 for heat pumps. New York's ConEd programs cover 70%+ of LED retrofit costs. Texas, Illinois, and Massachusetts have robust HVAC and lighting rebate programs.
Varies by State Stackable Utility Programs| State | Program Highlights | Max Incentive | Rating |
|---|---|---|---|
| California | TECH Clean CA, PG&E/SCE rebates, Self-Generation Incentive Program (SGIP) | $4,500/unit + SGIP | ★★★★★ |
| New York | ConEd, NYSERDA, NYC Clean Heat, Local Law 97 abatements | Up to 70% of costs | ★★★★★ |
| Massachusetts | Mass Save, HEAT Loan (0% financing), utility rebates | $6,500 HVAC + loans | ★★★★★ |
| Illinois | ComEd / Nicor Gas rebates, Solar Renewable Energy Credits | $200–$500/fixture | ★★★★ |
| Texas | Oncor, CenterPoint demand response + commercial rebates | Varies by utility | ★★★ |
| Colorado | Xcel Energy rebates, RENU loan program, solar incentives | $0.16/kWh saved | ★★★★ |
| Michigan | Consumers Energy + DTE rebates, MPSC energy efficiency fund | $300/kW demand | ★★★ |
We'll pull together every federal, state, and utility incentive your specific building qualifies for and deliver it to your inbox.