Section 179D Tax Deduction Services

NABiTax helps commercial building owners and the architects, engineers, and other designers of government and tax-exempt buildings find out whether a Section 179D deduction may be available — then supports the modeling, certification, allocation, and documentation needed to claim it. We serve clients in all 50 states, and every engagement starts with a free scoping review.

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Who our 179D services are for

Commercial building owners

Taxable owners of new or renovated commercial buildings — and residential buildings of four or more stories — may claim the deduction for qualifying HVAC, lighting, hot water, and envelope property.

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Architects, engineers, and designers

Tax-exempt and government owners generally can't use the deduction themselves, but they may allocate it to the designer who authored the technical specifications for the energy property.

Review Your Design Portfolio

Tax professionals: we coordinate directly with CPAs and preparers and provide the certification and Form 7205 support your client's return needs.

What we deliver

  1. Step 1

    Free scoping review

    We look at your projects, dates, ownership, and design role to see whether a usable benefit may exist — before any engagement.

  2. Step 2

    Engagement

    If a real opportunity is identified, we agree on scope and deliverables.

  3. Step 3

    Energy modeling

    Whole-building modeling compares the installed design with the applicable ASHRAE 90.1 reference building.

  4. Step 4

    Field inspection & certification

    A qualified, independent professional engineer or contractor verifies installed conditions and certifies the result.

  5. Step 5

    Allocation (designers)

    For tax-exempt and government buildings, we help prepare the allocation letter signed by the building owner.

  6. Step 6

    Delivery package

    Certification, calculations, supporting records, and Form 7205 support delivered for coordination with your tax preparer.

See the full step-by-step workflow on Our Process.

What affects eligibility and the amount

  • Certified modeled energy-cost savings versus the reference standard (25% minimum)
  • Building square footage and the tax year's published per-square-foot rates
  • Whether prevailing wage and apprenticeship requirements were met for the increased amount
  • Eligible cost of the energy property and any prior 179D deductions
  • Project dates, including the June 30, 2026 construction-start cutoff

No project is automatically eligible. Final results depend on certification and your tax advisor's review.

What to send us for a review

  • Building address, type, and gross square footage
  • Placed-in-service date (and construction-start date for recent projects)
  • Who owns the building — taxable owner, tax-exempt, or government
  • Your role: owner, architect, engineer, design-build contractor
  • Drawings or specifications for HVAC, lighting, and envelope
  • Project cost information, if available

How to evaluate a 179D provider

Whichever company you work with, these questions help separate a supportable claim from a sales estimate.

Relevant expertise
Do they routinely model commercial buildings and understand the designer-allocation rules?
Methodology
Do they use IRS-approved modeling software and a clear reference-building comparison?
Independent certification
Is the certifier a qualified, unrelated professional engineer or contractor?
Documentation
Will you receive a reviewable file — not just a number — that supports the claim?
Tax-advisor coordination
Do they work with your CPA rather than around them?

179D services in every state

Section 179D is a federal tax deduction, so the same IRS requirements apply whether your building is in Texas, California, Florida, New York, or any other state — it is not a separate state incentive. NABiTax works with owners and design firms nationwide. Modeling and documentation are handled remotely, and required field inspections are arranged for the building's location.

State and local energy codes can affect how a building was designed, but they don't change the federal 179D test, which compares the building with the applicable ASHRAE 90.1 reference standard.

Discuss 179D Services in Your State

Learn more about Section 179D

For a full overview, see our Section 179D guide or browse the 179D knowledge center.

This page is general information, not tax advice. Eligibility and deduction amounts depend on the facts of each project and must be confirmed by a qualified certifier and your tax advisor.