A multi-family building in New York City underwent a $1.1 million renovation focused on enhancing the building envelope to improve energy efficiency and sustainability. The project included upgrades to insulation, windows, and exterior materials, reducing heat loss and optimizing the building’s overall performance.

Since building envelope improvements directly impact energy efficiency, the renovation qualified for the 179D energy-efficient commercial building deduction, triggering a $4.00 per square foot deduction rate. By leveraging TaxTaker’s energy modeling, site verification, and certification process, the building owner secured a full $1.12 million deduction, matching the total project cost.

With recent expansions under the Inflation Reduction Act (IRA), 179D has become even more valuable for commercial property owners investing in energy-efficient upgrades. These improvements not only provided immediate tax savings but also reduced long-term energy costs, demonstrating how strategic renovations can drive both financial and sustainability benefits.