Josh Howes, CEO Walker Blue, LLC
Walker Blue, LLC, an engineering-led tax advisory firm specializing in clean energy and energy-efficiency incentives, voiced strong support for extending Section 179D, the Energy Efficient Commercial Building Deduction, and Section 45L, the New Energy Efficient Home Credit, beyond their scheduled expiration today.
The statement follows a June 29 letter from Reps. Dave Min and Johnny Olszewski Jr., co-chairs of the House Sustainable Energy and Environment Coalition’s Building Resilient Housing Task Force. The letter urges House Ways and Means Committee Chairman Jason Smith and Ranking Member Richard Neal to preserve the incentives, warning that their lapse would remove proven tools that help lower energy costs for American families and businesses while supporting domestic manufacturing and construction jobs.
“We’re hearing the urgency directly from our clients, school districts, multifamily developers, commercial building owners, and public agencies that have spent the past year documenting energy-efficient improvements because 179D and 45L made the economics work,” said Josh Howes, our CEO at Walker Blue. “Letting these provisions expire does not just end a tax benefit on paper. It removes a financing tool that helps real projects move forward at a time when utility bills and construction costs are already straining families, businesses, and public budgets.”
The SEEC letter notes that residential electricity prices have risen more than 18% nationally since January 2025 and that roughly one in six U.S. households are behind on energy bills. It highlights that HVAC, lighting, and building-envelope improvements enabled by 179D and 45L can save the average household about $500 per year on utility costs, while commercial building owners can claim up to $5.81 per square foot for qualifying efficiency upgrades. The letter also underscores the incentives’ role in supporting American manufacturing jobs and global competitiveness in building technologies.
Walker Blue’s work sits at the intersection of engineering and tax compliance. We provide energy modeling, technical certifications, and prevailing wage and apprenticeship documentation that underpin 179D deductions and 45L credits. Over the past year, we have supported K-12 school districts, housing authorities, non-profits, and commercial developers whose capital plans and project timelines were built around the continued availability of these incentives.
“A lapse creates immediate uncertainty for projects already in design, financing, or construction,” Howes said. “These are mature, well-understood provisions with established certification pathways. They are practical tools that turn energy-efficient concepts into completed buildings.”
The Task Force letter observes that the House-passed version of the One Big Beautiful Bill Act did not include a 179D sunset and that an extension would, in part, correct Senate language signed into law. It points to pending legislation, including Rep. Mike Thompson’s Energy Independence and Affordability Act and Rep. Brian Fitzpatrick’s American Energy Dominance Act, as vehicles for extending the incentives.
Walker Blue supports a clean, timely extension of both Section 179D and Section 45L. At a moment of rising energy costs and pressure on housing and public-sector budgets, these incentives remain among the most direct, bipartisan tools available to encourage efficient buildings, lower long-term operating costs, and support American workers in the building trades.
“Energy efficiency should be straightforward bipartisan ground,” Howes said. “Lower energy bills, stronger buildings, better schools, and good construction jobs are outcomes that enjoy broad support. Congress should act before the current deadline disrupts projects already moving through the market.”
Walker Blue will continue to help clients navigate 179D and 45L compliance and documentation requirements while advocating for stable, predictable tax policy that supports energy-efficient construction nationwide.
About Walker Blue, LLC
Walker Blue we an engineering-led tax advisory firm specializing in clean energy and energy-efficiency tax incentives, including Investment Tax Credit cost basis and beginning-of-construction studies, domestic content analysis, prevailing wage and apprenticeship compliance, Section 179D, Section 45L, Section 30C, and elective pay structuring under Section 6417. We serve tax-exempt and private-sector clients across energy, real estate, education, healthcare, manufacturing, and public sectors. Learn more at walker-blue.com.
Frequently Asked Questions About 179D and 45L
What is Section 179D?
Section 179D is the Energy Efficient Commercial Buildings Deduction. It allows qualifying building owners, and in some cases designers of government or tax-exempt buildings, to claim a federal tax deduction for energy-efficient improvements to commercial buildings.
Eligible systems may include interior lighting, HVAC, hot water systems, and building envelope improvements. For many public-sector and commercial projects, 179D has helped make investments in better-performing buildings more financially viable.
What is Section 45L?
Section 45L is the New Energy Efficient Home Credit. It provides a federal tax credit for qualifying new energy-efficient homes, including certain single-family and multifamily residential projects.
For developers, builders, and multifamily housing stakeholders, 45L has been an important tool for supporting higher-efficiency construction and improving long-term energy performance.
Are 179D and 45L still available?
Under current law and guidance, both incentives are subject to major timing limitations.
Section 179D generally no longer applies to property where construction begins after June 30, 2026. Section 45L generally no longer applies to qualified new energy-efficient homes acquired after June 30, 2026.
Projects that were already in motion before the deadline may still need to be evaluated based on their specific facts, documentation, construction timeline, and compliance requirements.
Can projects that started before June 30, 2026 still qualify?
Potentially, yes. Projects that began construction or met applicable timing requirements before the June 30, 2026 cutoff may still be eligible, depending on the facts.
Eligibility is not automatic. Owners, developers, public agencies, and project teams should review construction-start documentation, energy modeling, certification requirements, project scope, and supporting records to determine whether a project may still qualify.
Why does Walker Blue support extending 179D and 45L?
Walker Blue supports extending 179D and 45L because these incentives help make energy-efficient building projects more practical and financially achievable.
For school districts, multifamily developers, commercial building owners, housing authorities, nonprofits, and public agencies, these provisions can help justify investments in better HVAC systems, lighting, building envelope improvements, and other upgrades that reduce long-term operating costs.
A clean, timely extension would provide greater certainty for projects already in design, financing, or construction.
Who benefits from 179D and 45L?
179D and 45L can benefit a wide range of stakeholders, including:
Commercial building owners, multifamily developers, homebuilders, school districts, universities, municipalities, public agencies, housing authorities, nonprofits, architects, engineers, contractors, and tax-exempt entities.
The value of these incentives often extends beyond the tax benefit itself. Energy-efficient buildings can reduce utility costs, improve building performance, support capital planning, and strengthen the financial case for construction or renovation projects.
What types of improvements may be relevant for 179D?
179D is generally tied to energy-efficient commercial building property. Relevant systems may include lighting, HVAC, hot water, and building envelope improvements.
Examples may include upgraded mechanical systems, improved insulation, high-performance windows, more efficient lighting, and other qualifying building systems that reduce energy consumption compared with applicable standards.
The specific deduction depends on the project scope, building type, energy modeling, certification pathway, and compliance documentation.
What types of projects may be relevant for 45L?
45L generally applies to qualifying new energy-efficient residential units, including certain single-family homes and multifamily dwelling units.
Relevant projects may include newly constructed homes, apartment communities, affordable housing developments, and multifamily projects that meet applicable energy-efficiency certification requirements.
Because timing and certification requirements are critical, developers should evaluate 45L eligibility early in the project lifecycle.
What should building owners and developers do now?
Building owners, developers, and public-sector organizations should review any project that was in design, construction, acquisition, or documentation before the June 30, 2026 deadline.
The most important next step is to confirm whether the project may still qualify based on timing, scope, energy performance, certification requirements, and available records.
For new projects, owners should evaluate alternative incentive strategies and determine whether other federal, state, local, or utility programs may apply.
Why is documentation important for 179D and 45L?
Documentation is essential because these incentives depend on technical and compliance requirements.
For 179D, projects may require energy modeling, technical certifications, building system analysis, and support for the claimed deduction. For 45L, projects generally require confirmation that eligible homes or units meet the applicable energy-efficiency standards.
Strong documentation can help support the claim, reduce audit risk, and give owners, developers, accountants, and project partners more confidence in the incentive process.
How can Walker Blue help?
Walker Blue helps clients evaluate, document, and support energy-efficiency tax incentives, including Section 179D and Section 45L.
Our work includes energy modeling, technical certification, compliance review, incentive documentation, and coordination with owners, developers, public agencies, accountants, and project teams.
If your project was already in motion before the June 30, 2026 deadline, Walker Blue can help assess whether it may still qualify. For future projects, we can help identify other incentive pathways and evaluate the best strategy based on the project facts.
Is this information tax advice?
No. This information is for general educational purposes only. Eligibility for 179D, 45L, or any other tax incentive depends on the specific facts of the project and should be reviewed with qualified engineering, tax, and legal advisors.
