Energy Efficiency: Boosting Tax Incentives for Energy-Saving Initiatives
Section §179D - Energy Efficient Commercial Buildings Deduction
Section 179D offers tax deductions for commercial buildings implementing energy-efficient upgrades, now permanently set by the Consolidated Appropriations Act of 2021, with up to $1.88 per square foot for qualifying improvements.
179D Deduction Details
Section §45L - New Energy Efficient Residential Credit
The amended Section 45L provides up to $5,000 in tax credits for new or reconstructed homes that meet ENERGY STAR or DOE Zero Energy Ready Home standards, applicable for homes acquired for residential use from January 1, 2023, through December 31, 2032.
45L Credit Details
Section §45V - Clean Hydrogen Production Tax Credit
The Clean Hydrogen Production Tax Credit offers up to $3.00 per kilogram over 10 years for hydrogen production with carbon emissions below four kilograms CO2-equivalent per kilogram, assessed using the GREET model from Argonne National Laboratory. The credit's amount varies based on carbon intensity and compliance with prevailing wage and apprenticeship requirements.
45V Credit Details
Section §45Z - Clean Fuel Production Credit (2025 onwards)
The Section 45Z Clean Fuel Production Credit, part of the Inflation Reduction Act, offers credits up to $1.75 per gallon for low-emission transportation fuels produced and sold from 2025 through 2027. The credit amount varies based on GHG emissions and compliance with prevailing wage and apprenticeship standards.
45Z Credit Details