Federal Funding Sources for Implementing Sustainability Measures
Given the current uncertain and ever-changing federal landscape, this section is a bit more sparse than perhaps what it could be. Despite that, there are still opportunities out there for small businesses who are looking to rehabilitate their buildings and install energy-saving measures. Below are a few of the options that are still in place as of November 2025:
Department of Energy - 179D Energy Efficient Commercial Buildings Tax Deduction
Description: This is a program offered by the Department of Energy that allows building owners to claim a tax deduction on certain qualified energy efficient retrofit projects that offer at least 25% energy savings on the building's site Energy Use Intensity.
NOTE: Per the One Big Beautiful Bill Act (Public Law 119-21), the 179D commercial building tax deduction shall not apply to property the construction of which begins after June 30, 2026.
Internal Revenue Service - Historic Rehabilitation Tax Credit
Description: This is a credit provided by the federal government and offers a tax incentive to rehabilitate historic buildings.
Eligible Entities: Taxpayers that own an interest in a Qualified Rehabilitated Building either directly or through a pass through entity, or are lessees of the building in certain cases and generally include: individuals, corporations, partners / shareholders, estates and trusts.
Funding Terms Overview: 20% of Qualified Rehabilitation Expenditures claimed proportionately over 5 years