How to Claim a 179D Deduction

By Carter McBride
Calculating taxes

A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com

Section 179D is a tax code allowing for a deduction on costs for energy-efficient commercial building property. The IRS allows a deduction for the full amount of costs on any property placed in service during that period. Calculate the maximum deduction allowed by multiplying $1.80 by the square feet of the building.

Collect your receipts related to energy-efficient commercial building property. Included in the receipts should be any certifications from the construction.

Enter the amount of deduction under "other deductions" on the appropriate form. As of 2010, no forms had a spot for a 179D deduction, so it must go under "other deductions." The appropriate form is Form 1120 for corporations, Form 1120-S for S corporations and Form 1065 for partnerships.

Attach a document listing all other deductions taken to the tax form.

About the Author

Carter McBride started writing in 2007 with CMBA's IP section. He has written for Bureau of National Affairs, Inc and various websites. He received a CALI Award for The Actual Impact of MasterCard's Initial Public Offering in 2008. McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut.

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