The 179D deduction did not die on June 30, 2026. The energy efficient commercial building deduction closed to new projects that begin construction after that date, and that is the entire loss. Every commercial building already placed in service still qualifies, and so does every project that broke ground before July 1. If you own a warehouse, office, hotel, self storage facility, medical building, or an apartment building four stories or taller placed in service since 2006 and never claimed section 179D on it, you can catch the whole deduction up on your current return through Form 3115, change number 152, without amending a single old year. David Wiener, Mr. Cash Flow, walks both doors: the 179D tax deduction rates by year, from a flat $1.80 a square foot before 2023 to the 2026 scale of $0.59 to $1.19 base and $2.97 to $5.94 with prevailing wage, Form 7205 and the engineering certification behind it, the 179D allocation letter that hands the deduction to architects and engineers, and why 179D and cost segregation pull from two different piles on the same building.
Built for three people. The owner or investor who never claimed 179D on a building or a renovation. The developer whose project was underway this spring and finishes years from now. And the architects and engineers who design for schools, cities, hospitals and universities, because your version runs on a three year clock, not a twenty year one.
WHAT YOU WILL LEARN
• Is the 179D deduction dead? What the One Big Beautiful Bill Act actually terminated, and the two groups it never touched
• How to claim 179D on a building you already own: Form 3115, change number 152, and a catch up with nothing amended
• 179D deduction rates by year, from $1.80 a square foot before 2023 to the 2026 scale of $0.59 to $1.19 base and $2.97 to $5.94 with prevailing wage
• What begin construction means: the physical work test, the 5 percent cost test, and the dated file that proves your project made the cutoff
• 179D for architects and engineers: who signs the allocation letter, why it is given away only once, and why your window is three years
CHAPTERS
00:00 Is the 179D deduction dead in 2026?
04:05 What is the 179D deduction and what does it pay for?
07:42 What the One Big Beautiful Bill Act changed on June 30, 2026
11:19 179D when construction began before the cutoff
12:54 What proves your project started before July 1, 2026
13:32 179D deduction rates 2026: $0.59 to $5.94 per square foot
16:43 How to claim 179D on a building you already own: Form 3115
21:50 179D and cost segregation on the same building
26:39 179D for architects and engineers: the allocation letter
30:50 179D examples: warehouse, medical office, hotel, school
Nothing in this episode is tax advice for your situation. Your facts are your facts and they need a professional who knows them. Tax evasion is a crime, but tax avoidance is mandatory.
Your host: David Wiener, "Mr. Cash Flow"
https://davidhwiener.com
David.wiener@cashflowstrategies.us
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