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While legislation signed into law in 2025 extends or enhances many tax breaks for businesses, it also ends or reduces several clean energy incentives. Fortunately, your business may still qualify for certain credits and deductions if action is taken soon — particularly before the first half of 2026.
Make Energy-Efficient Building Improvements
The Section 179D deduction allows owners of new or existing commercial buildings to immediately deduct the cost of qualifying energy-efficient improvements rather than depreciating them over decades. This deduction is available for projects where construction begins by June 30, 2026.
The deduction applies to:
- New construction, additions, or renovations of commercial buildings of any size
- Multifamily residential rental buildings at least four stories above grade
Eligible improvements include lighting systems, HVAC and hot water systems, and building envelope upgrades. To qualify, improvements must reduce annual energy and power costs by at least 25% relative to industry standards, as certified by a licensed engineer or independent contractor. Deduction amounts increase with greater energy savings, and projects that meet prevailing wage and apprenticeship requirements may qualify for additional bonus deductions.
Consider Vehicle-Related Incentives
Businesses that acquired eligible commercial clean vehicles by September 30, 2025, may qualify for the Section 45W Qualified Commercial Clean Vehicle Credit on their 2025 tax return.
There’s also time to install alternative fuel vehicle refueling property — such as electric vehicle charging stations or clean fuel dispensers — and claim the Section 30C tax credit for property placed in service by June 30, 2026. Eligible property can include storage, refueling, or charging infrastructure, and credits increase with certain qualifications.
Other Clean Energy Opportunities
Some other incentives may still be available if your business acts quickly, including:
Deadlines and eligibility rules vary, so careful planning is essential to maximize benefits.
For More Information or Next Steps
Clean energy tax incentives are valuable, but the rules are complex. At Erwin, Fountain & Jackson, P.A., we help businesses:
- Identify which incentives apply to your projects
- Evaluate timing and tax impact
- Ensure compliance with certification and documentation requirements
Act now to take full advantage of clean energy tax breaks before key deadlines pass. Contact our office to discuss strategies for your business. Erwin, Fountain & Jackson, P.A. — Jacksonville CPA Firm
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