Energy Efficiency Tax Incentives Renewed Through 2020

Published January 2020

Groundbreaking Tax Breaks Provide Powerful Planning Tool

Important tax extenders related to energy tax credits and incentives have been extended through 2020. Many of these tax breaks had originally expired at the end of 2017 and have been retroactively approved for 2018 and 2019, but are now approved (proactively) through 2020.


The key energy tax provisions that may impact you include 45L and 179D.

We recommend becoming familiar with these incentives as they may be a vital part of your business plan through 2020.

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Contact us to see if your project qualifies for these newly available tax credits! 800-795-1230


This news is especially groundbreaking as previously, businesses were only able to receive these tax benefits retroactively, and they were not always guaranteed. In other words, businesses had to take a gamble on whether they would receive the tax credit after the fact, and now these incentives can be counted on when planning your 2020 projects.

This is exciting news for business owners that have been interested in making energy efficiency upgrades to their properties. 2020 is your year; we do not know when or if this will happen again!

As with any tax benefit, eligibility is very specific and everyone’s tax situation is different, but you may qualify for these tax incentives. We recommend discussing with your CFO or CPA about 179D benefits being extended through 2020 and how you can take advantage.


179D: Energy Efficiency Tax Deductions Extended for Commercial Buildings

Tax deductions of up to $1.80/sq. ft. for energy efficient commercial building property have been extended through 2020. Projects such as upgraded interior or exterior lighting systems may qualify for a portion of these deductions.

Every lighting project is unique, and sometimes only portions of a project qualifies, depending on the overall design and a variety of other factors. To find out if your project qualifies for 179D tax incentives please reach out to one of our Lighting Experts at 800-795-1230, or email

You may also schedule a consultation with one of our Lighting Experts by filling out a quick form and someone will get back to you ASAP.

45L: Energy Efficiency Tax Credits Extended for Multifamily & Residential Developers

This rule can be applied to many things in a production plan, which includes your lighting system.  The fewer pieces there are to a system the easier and quicker it is to maintain, which in turn keeps maintenance costs down.  You need enough luminaires to create even light but there are situations when moving from other lighting technologies to LED that not as many luminaires are needed.  A one for one LED replacement of an old system may mean installing more luminaires than would be needed with a properly designed lighting system.  The fewer fixtures you must maintain the lower your maintenance costs will be.