Disclaimer: The information provided by SunEarth Inc. on tax credits is intended for general informational purposes only. It does not constitute legal, financial, or tax advice. We recommend consulting with a qualified tax professional or advisor before making any decisions based on the information provided.

Solar water heating is a highly efficient and sustainable solution for reducing energy consumption. With the 179D tax deduction and other green incentives, businesses can maximize savings by investing in solar thermal projects like those offered by SunEarth. This article will explore how organizations can benefit from these deductions, particularly with the recent enhancements made by the Inflation Reduction Act and will provide insights on the practical steps required to qualify.

Overview of 179D Tax Deduction:

The 179D tax deduction incentivizes commercial building owners to adopt energy-efficient improvements, rewarding them for reducing their energy footprint. Here are the key aspects:

For a 25% energy savings, the deduction is $0.50 per square foot. 
For each additional percentage point above 25%, the deduction increases by $0.02 per square foot, up to a maximum of $1.00 per square foot for 50% savings. 
If prevailing wage and apprenticeship requirements are met, these amounts are multiplied by five, reaching up to $5.00 per square foot.

Solar Water Heating and 179D:

Solar water heating (SHW) systems can significantly contribute to qualifying for the 179D tax deduction:

Resources for Claiming 179D:

When claiming 179D deductions, consult these essential resources:

The 179D tax deduction and other green incentives provide businesses with substantial opportunities to improve energy efficiency while saving on taxes. Solar water heating projects like those offered by SunEarth can be part of an integrated strategy that achieves significant energy savings. By leveraging these incentives, organizations can not only reduce costs but also contribute to a sustainable future.


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