2025 Tax Law Changes: What Developers, ESCOs, and Project Teams Should Know Now

2025 Tax Law Changes: What Developers, ESCOs, and Project Teams Should Know Now

UPDATE The 2025 tax law, known as the “One Big Beautiful Bill,” resets the outlook for tax planning across energy, real estate, and construction. Many credits from the Inflation Reduction Act are being phased out sooner than expected. Others now carry more complexity due to sourcing rules, ownership restrictions, and long-term compliance requirements. For ESCOs, … Read more

The Pitfalls of Success-Based Fees in Energy Tax Incentives (179D & 45L)

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By David Diaz, Managing Partner at Walker Reid Strategies Let’s talk about something that’s been bothering me in the energy tax incentive space: success-based fees. If you’re a building owner, tax professional, or a designer/ESCO working on tax-exempt buildings, you need to hear this. Success-based fees in the §179D deduction process are, in my opinion, … Read more

Navigating Energy Tax Incentives: 179D, 45L, and ITC in a Changing Political Landscape

Over the past year, the Inflation Reduction Act (IRA) has fundamentally reshaped the incentives landscape for energy-efficient buildings and clean energy initiatives. At Walker Reid, we’ve helped building owners, architects, developers, and other stakeholders maximize their tax benefits and navigate new legislative updates—particularly surrounding the 179D deduction, 45L credit, and Investment Tax Credit (ITC). With … Read more

179D Tax Incentive and 45L Credits for Energy Tax Benefits in 2025

The 179D Tax Incentives and 45L Credits Tax Benefits have become powerful tools for promoting energy-efficient construction and sustainable development. In 2025, updates and legislative changes will significantly impact CPAs, architectural and engineering (A/E) firms, real estate developers, and construction and energy service companies. Staying informed on these developments is essential to optimizing benefits and … Read more

Tax Benefits for Green Homes: ENERGY STAR vs. ZERH

A small plant growing inside a light bulb placed on soil, symbolizing sustainable energy and growth.

The landscape of residential construction is shifting significantly towards energy efficiency, especially now that the federal government has upgraded a powerful tax benefit program to drive this change: the §45L tax credit.  This credit offers substantial advantages for developers constructing homes that meet specific energy-efficient standards. Let’s understand how green home developers can maximize §45L … Read more

Maximizing Benefits for Developers with the §45L Tax Credit

The §45L Energy-Efficient Tax Credit presents a fantastic opportunity to slash your tax bill while creating eco-friendly living spaces.  Not only does §45L contribute to a healthier environment by reducing greenhouse gas emissions and total energy consumption, but it also offers significant financial benefits to developers. If you are the developer of apartments, condominiums, single-family … Read more

How the 45L Tax Credit Promotes Green Homes

Green building practices and the §45L Tax Credit go hand and hand. At Walker Reid, we’re passionate about empowering developers to embrace sustainability, and the §45L Tax Credit is a powerful tool that makes it more achievable than ever. Unveiling the §45L Tax Credit The §45L Tax Credit is a federal program designed to incentivize … Read more

Uncovering Untapped Tax Benefits: How 2020-2022 Residential Projects Can Still Benefit From The $2,000 Per Unit §45L Tax Credit

In the world of residential real estate, developers continually seek avenues to maximize returns on investment (ROI) in an industry known for tight margins. We’ll take a look into the advantages of §45L tax credit, focusing on how incorporating energy-efficient features promotes sustainability and leads to a potentially $2,000 per unit tax credit.  Understanding the … Read more

Disaster Relief has Extended Some Corporate Tax Filing Deadlines

Disaster Relief has Extended Some Corporate Tax Filing Deadlines   Each year, the IRS extends special tax provisions to businesses that have been disaster-impacted. These tax provisions are typically issued when the federal government has declared the business’s geographic area as a major disaster area. If your business is filing Section 179D or Section 45L … Read more

Case Study 8 of 8: Qualifying as a designer of energy-efficient properties

Case Study 8 of 8: Qualifying as a designer of energy-efficient properties    Our final review of the IRS case studies in Memorandum AM 2018-005 wraps up our series examining eight scenarios that help clarify the confusion that can surround a successful §179D tax deduction allocation.   As IRS §179D tax deduction allocations have been … Read more

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