Section 179D Tax Deduction Florida (2025)Get $1.80-$5.00 Per Square Foot Back
💰 Quick Summary
- • What it is: Federal tax deduction for energy-efficient commercial buildings
- • Amount: $1.80-$5.00 per square foot (up to $500k+ for large buildings)
- • Who qualifies: Building owners who install qualifying HVAC, lighting, or envelope upgrades
- • Deadline: Retroactive claims available for projects since 2006
- • Stacking: Yes! Combine with utility rebates + other tax credits
- • Requirements: Must achieve 25-50% energy savings vs ASHRAE baseline
Section 179D is one of the most valuable—yet most overlooked—tax incentives for Florida commercial buildings. A 100,000 sqft building can receive up to $500,000 in tax deductions for qualifying energy upgrades.
The Inflation Reduction Act (2022) significantly expanded 179D, increasing the maximum deduction from $1.80/sqft to $5.00/sqft, making now the best time in history to claim this benefit.
💡 Real Example: Miami Office Building
Building: 65,000 sqft office, Miami
Project: HVAC replacement + LED retrofit + building envelope
Total cost: $485,000
Energy savings: 38% below ASHRAE baseline
Section 179D: $3.25/sqft × 65,000 = $211,250 deduction
FPL rebates: $38,500
Total benefits: $249,750
Net project cost: $235,250 (51% cost recovery!)
Tax savings (30% rate): $63,375 in Year 1
Calculate Your Section 179D Deduction
Upload your Florida electric bill and we'll analyze your building for 179D eligibility.
📸 Check 179D Eligibility (Free) →What is Section 179D?
Section 179D is a federal tax deduction that rewards commercial building owners for installing energy-efficient interior lighting, HVAC, and building envelope systems.
2025 Deduction Amounts (Post-IRA)
| Energy Savings | Deduction | 50k sqft Example |
|---|---|---|
| 25% vs baseline | $0.50-$1.00/sqft | $25k-$50k |
| 30-40% vs baseline | $1.80-$2.50/sqft | $90k-$125k |
| 40-50% vs baseline | $2.50-$4.00/sqft | $125k-$200k |
| 50%+ vs baseline | $5.00/sqft (max) | $250k |
💰 Key Advantages
- • Deduction, not credit: Reduces taxable income
- • No cap: 500k sqft = up to $2.5M deduction
- • Retroactive: Can claim projects back to 2006
- • Stackable: Combine with Duke/FPL/TECO rebates
- • Permanent: No expiration date
Who Qualifies in Florida?
✅ Eligible Buildings
- • Office buildings
- • Retail stores
- • Hotels/motels
- • Restaurants
- • Warehouses
- • Manufacturing
- • Schools/universities
- • Hospitals
- • Government buildings
✅ Qualifying Systems
- • HVAC: High-efficiency systems
- • Lighting: LED retrofits, controls
- • Envelope: Roof, windows, insulation
- • Automation: Energy management
- • Combination: Best results
Florida Advantages
Florida's high cooling loads make it easier to achieve 25-50% savings:
- • HVAC upgrades have larger impact in hot climates
- • LED retrofits save more due to reduced cooling
- • Many FL buildings pre-2006 (easier baseline)
How to Claim (5 Steps)
Hire Energy Modeler
Need an IRS-approved third party to certify your building.
Cost: $2k-$8k. PowerAuditor.ai can connect you with certified pros.
Energy Modeling
Modeler simulates building vs ASHRAE 90.1 baseline, documents savings.
Timeline: 2-4 weeks
Steps 3-5:
- 3. File with tax return: Provide certification to CPA
- 4. Receive deduction: Reduces taxable income
- 5. Maintain docs: Keep certification for audits
Florida Case Studies
Tampa Office Tower
Building: 185,000 sqft, 12 stories
Project: HVAC + LED + envelope
Cost: $2.8M
Savings: 44% vs baseline
179D: $3.75/sqft × 185k = $693,750
Tax savings (35%): $242,812
TECO rebates: $84,500
Total: $327,312 (12%)
Fort Lauderdale Retail
Building: 42,000 sqft plaza
Project: LED + solar + controls
Cost: $385,000
Savings: 32% vs baseline
179D: $2.10/sqft × 42k = $88,200
Tax savings (25%): $22,050
FPL rebates: $28,400
Total: $50,450 (13%)
Frequently Asked Questions
Can I claim 179D retroactively?
Yes! Amend tax returns for the past 3 years to claim 179D for projects completed since 2006. Many Florida businesses have unclaimed $50k-$500k+ sitting there.
Does PowerAuditor.ai help with 179D?
Yes. PowerAuditor.ai analyzes your building to estimate 179D eligibility, connects you with certified energy modelers in Florida, and calculates combined savings from 179D + utility rebates.
Can I stack 179D with other incentives?
Absolutely! Stack 179D with Duke/FPL/TECO rebates, solar ITC (30%), MACRS depreciation, and state programs for 50-60% total cost recovery.
Related Resources
Commercial Solar Florida
Solar projects often qualify for 179D. Combine 30% ITC + 179D + MACRS.
Read Guide →RebatesDuke Energy Rebates
Stack Duke rebates ($10k-$50k) with 179D for 50-60% total cost recovery.
View Rebates →Complete GuideReduce Costs 15-40%
179D is one of 5 strategies to dramatically reduce Florida electric costs.
See Strategies →Claim Your Section 179D Deduction
Upload your Florida electric bill and discover if you qualify for $1.80-$5.00/sqft tax deduction.
📸 Check Eligibility (Free) →✅ Free analysis • ✅ Instant estimate • ✅ PowerAuditor.ai