Section 179D eliminated for projects starting after June 30, 2026 (One Big Beautiful Bill Act). Bonus depreciation permanently restored to 100%. State solar program blocks filling. This tracker covers every major commercial energy incentive with a 2026 deadline — updated May 2026.
The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025. This reverses the TCJA phase-down entirely. Updated schedule:
| Tax Year | Bonus Depreciation Rate | Status |
|---|---|---|
| 2022 | 100% (TCJA) | Historical |
| 2023 | 80% (TCJA phase-down) | Historical |
| 2024 | 60% (TCJA phase-down) | Historical |
| 2025 (Jan 1–19) | 40% (TCJA phase-down, 19-day gap) | Historical |
| 2025 (Jan 20+) onward | 100% PERMANENT | ✅ Active — OBBBA, no sunset |
| 2026 | 100% PERMANENT | ✅ Active — OBBBA, no sunset |
| 2027+ | 100% PERMANENT | Permanent — no expiration |
What this means for commercial projects: All commercial energy equipment (solar panels, HVAC systems, LED lighting, battery storage, qualified improvement property) placed in service in 2026 qualifies for 100% first-year bonus depreciation, permanently. A $1M solar system with 30% ITC and 100% bonus depreciation on the reduced $850K basis generates immediate first-year tax savings of $300K (ITC) + $340K (bonus depreciation at 40% tax rate) = $640K total year-one tax benefit on a $1M project. Source: OBBBA (P.L. 119-21), IRS Notice 2026-11.
The IRA extended the ITC at 30% through 2032 for solar, battery storage, fuel cells, geothermal, and other qualifying technologies. The ITC is not expiring in 2026 — commercial buildings have until 2032 before the phase-down begins. However, the domestic content bonus (10%) and energy community bonus (10%) require additional qualification documentation that can delay projects.
The One Big Beautiful Bill Act (OBBBA, P.L. 119-21) eliminates Section 179D for commercial buildings that begin construction after June 30, 2026. This is the hardest deadline on this page. The 2025/2026 rate is up to $5.94/sqft (with prevailing wage/apprenticeship compliance, per Revenue Procedure 2025-32). Without labor compliance, the rate is $0.59–$1.19/sqft.
Retroactive claims still available: Existing and recently completed projects can claim 179D retroactively via Form 3115 on current tax returns (look-back studies). These are not affected by the OBBBA cutoff — only new construction starts after June 30, 2026 are eliminated.
→ See our full guide: Section 179D Guide 2026
State solar and efficiency incentive programs don't "expire" cleanly — they run out of budget allocation or complete their program year. These are the programs most at risk of closing before end of 2026:
| Program | Type | Amount | Deadline / Status | Urgency |
|---|---|---|---|---|
| Section 179D — New Construction Starts | Federal | Up to $5.94/sqft | Jun 30, 2026 (OBBBA eliminates for new starts) | CRITICAL |
| Bonus Depreciation | Federal | 100% — permanent (OBBBA) | No deadline — permanently restored | NO DEADLINE |
| MA SMART Block 8 — Commercial | Massachusetts | $0.06–0.30/kWh | Mid-2026 (capacity limit) | HIGH |
| IL Adjustable Block Program | Illinois | $50–80/MWh RECs | Oct 2026 (program year end) | HIGH |
| NJ Transition Incentive (TREC) | New Jersey | $152/MEC | Aug 2026 (budget exhaustion) | HIGH |
| CA SGIP — Large Storage | California | $0.15–0.50/Wh | Q4 2026 (budget exhaustion) | MEDIUM |
| NY FlexTech Program | New York | 50% of study costs | Sep 30, 2026 (program year) | MEDIUM |
| CO Energy Office Loan | Colorado | 3–5% loans up to $500K | Jul 1, 2026 (cycle end) | MEDIUM |
| VA Clean Energy Tax Credit | Virginia | 20% of installed cost | Dec 31, 2026 (sunset) | MEDIUM |
| Section 179D (retroactive look-back claims) | Federal | Up to $5.94/sqft | Still available — existing/completed projects | CLAIM NOW |
| ITC (30%) — Solar & Storage | Federal | 30% of project cost | Through 2032 | STABLE |
EnergyStackHub's Incentive Finder maps all available federal, state, and utility programs for your building type and location — including which 2026 deadlines apply to you.
Find My Incentives →Enter your building details and we'll show every applicable incentive, its deadline, and estimated value for your project.
Open IRA Calculator →The following table calculates the concrete dollar value at stake for each major expiring incentive — using standardized building archetypes and IRS/DOE source data. These are not estimates. They are calculations from published rates applied to building-type inputs. The "unclaimed" amounts represent real money leaving facilities managers' budgets if deadlines pass.
If your 100,000 sqft commercial office building hasn't claimed 179D yet, you're leaving up to $500,000 on the table. At the 2026 maximum deduction rate of $5.00/sqft (prevailing wage requirement met), a 100,000 sqft building qualifies for a $500,000 tax deduction — which translates to approximately $125,000–$185,000 in actual tax savings at a 25–37% corporate tax rate.
The June 30, 2026 deadline applies to construction start date — buildings that begin qualifying energy efficiency projects (HVAC, lighting, building envelope) before June 30 preserve eligibility at current rates. After June 30, the deduction rate structure is scheduled to revert or be renegotiated under OBBBA provisions.
Source: IRS Rev. Proc. 2024-31 ($5.00/sqft max deduction for prevailing wage compliance); IRS Form 7205. EnergyStackHub analysis: $500K deduction × 25–37% corporate tax rate = $125K–$185K net tax savings.
Bonus depreciation is phasing out: 20% in 2026, then 0% in 2027 under the Tax Cuts and Jobs Act schedule (unless the One Big Beautiful Budget Act extends it). For a facility spending $500,000 on qualifying energy equipment in 2026 (HVAC replacement, LED lighting, controls), the 20% bonus depreciation allows an immediate $100,000 deduction in the first year — versus standard MACRS schedules spreading the same deduction over 5–15 years. At a 37.5% effective corporate tax rate, this generates $37,500 in accelerated tax savings vs. a 2027 purchase with 0% bonus.
Source: IRS Bonus Depreciation guidance; TCJA phase-down schedule (100% → 80% → 60% → 40% → 20% → 0%). OBBBA (One Big Beautiful Budget Act, H.R. 1, May 2025) proposes restoring 100% bonus depreciation — status: passed House, pending Senate as of May 2026. Calculation: $500K spend × 20% bonus = $100K deduction × 37.5% tax rate = $37,500 accelerated savings vs. MACRS. EnergyStackHub analysis, May 2026.
A $500,000 commercial solar + battery storage installation qualifies for the 30% ITC base ($150,000) under IRA Section 48. With domestic content adder (+10%) or energy community adder (+10%), total credit can reach 40–50% — worth $200,000–$250,000 on a $500K system. Adder credits require prevailing wage compliance for systems over 1 MW. The 30% base credit is permanent under current IRA law; adder eligibility depends on project location and supply chain.
Source: IRS Notice 2023-29 (energy community adder); IRS Notice 2023-38 (domestic content adder). Calculation: $500K system × 30% base ITC = $150K credit; domestic content adder +10% = $200K total. EnergyStackHub analysis, May 2026.
Enter your building details to see your specific 179D + ITC + bonus depreciation stack — with dollar amounts, not percentages.
179D Calculator Incentives Calculator Energy Themes Stack →Energy study, IRS certification, Form 7205 — flat fee from $750. Results in 10–15 business days.
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