7205

Energy Efficient Commercial Buildings Deduction

Agency
IRS
Revision
Rev. December 2023
Fillable fields
113
Pages
1
Official source
IRS form page
Checked
October 21, 2026
Fill 7205 online
Page 1 of form 7205

Form 7205: Energy Efficient Commercial Buildings Deduction

Form 7205, Energy Efficient Commercial Buildings Deduction, is used to calculate and claim the deduction under section 179D for qualifying energy efficient commercial building property placed in service during the tax year. It also identifies the filer as the building owner or the designer, and gives information on the person who performed the certification and the person who completed any allocation.

The About page says qualified business entities and individuals use the form. It is attached to the filer's tax return, and the total deduction on line 3 is also entered on the appropriate line of that return.

The instructions say to keep using this December 2023 revision for property placed in service after December 31, 2022, and the December 2022 revision for property placed in service before January 1, 2023. They also say the deduction was terminated for property the construction of which begins after June 30, 2026. You can fill out the PDF free in your browser on this page and download it without an account.

Top of page 1 of Form 7205: Energy Efficient Commercial Buildings Deduction, as printed by IRS

What's on Form 7205

Header

Name(s) shown on the return, identifying number, and the choice of claiming the deduction as building owner or as designer of energy efficient property.

Part I: building and EEP information

Up to four buildings on rows A to D: address, date placed in service, energy savings or energy use intensity reduction, increased deduction and retrofit plan boxes, amount per square foot, square footage and potential deduction.

Part II: deduction computation

Columns (a) to (k) compare the potential amount with amounts claimed in prior years and the maximum allowed, then limit the deduction by the cost of the property.

Line 3: total deduction

The total section 179D deduction from column 2(k), also entered on the appropriate line of the tax return.

Part III: certification

For each property, the name of the qualified individual who completed the certification, the date, their employer and address.

Part IV: designer allocation

Completed by a designer only: the identified owner of the building, date of allocation, and the owner's authorized representative and address.

How to fill out Form 7205

  1. 1

    Check one status

    Check either "Building owner" or "Designer of energy efficient property (EEP)". The instructions say to check only one.

  2. 2

    Part I, columns (a) to (c)

    Enter the building name and address, the date the property was placed in service, and the energy savings percentage or the energy use intensity reduction, rounded to two decimal places. Keep buildings on separate rows.

  3. 3

    Part I, columns (d) and (e)

    Check (d) only if the increased deduction criteria are met, such as installation that began before January 29, 2023, or prevailing wage and apprenticeship requirements. Check (e) only for retrofit property installed under a qualified retrofit plan.

  4. 4

    Part I, columns (f) to (h)

    Figure the potential amount per square foot with the worksheet in the instructions, enter the building square footage, and multiply the two in column (h).

  5. 5

    Part II

    Enter the per square foot amount claimed for the building in the prior 3 tax years (4 if the deduction is allowable to the designer), subtract it from the maximum allowed, and enter the cost of the property, not the whole building. A designer enters the amount allocated in column (j).

  6. 6

    Line 3 and Parts III and IV

    Add column 2(k) on line 3 and carry it to the return; the instructions use Form 1120, line 25 as an example. List the certifier in Part III. Designers complete Part IV. For more than four properties, attach more forms but complete line 3 on only one.

Why fill Form 7205 on indox

You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.

  • Fill the form right in your browser, no software to install
  • Free to fill and free to download, with no account
  • The official blank straight from the IRS, not a copy someone retyped
  • Works on a phone, tablet or computer

How to file it and limits to know

Attach to the tax return

The form says "Attach to your tax return." The line 3 total also goes on the applicable line of that return.

Maximum amounts

The instructions list, for tax years beginning on or after January 1, 2026, $5.94 per square foot when column 1(d) is checked and $1.19 when it is not. They say the maximums may be adjusted for inflation.

Wage and apprenticeship statement

To claim the increased amount, the instructions say to attach a statement to the timely filed income tax return (including extensions) showing the prevailing wage and apprenticeship requirements are met.

Basis reduction

The instructions say the basis of the property is reduced by the deduction allowed, and the building owner reduces basis by any deduction allocated to a designer.

Termination date

The instructions say the deduction was terminated for property the construction of which begins after June 30, 2026.

Related forms

Who files Form 7205?

  • Building owners

    The owner of the building checks "Building owner" when claiming the deduction for qualifying property installed on or in that building.

  • Designers of EEP

    When EEP is installed in a building owned by a specified tax-exempt entity, the deduction may be allocated to the person primarily responsible for designing it. The instructions say a person that merely installs, repairs or maintains the property is not a designer.

  • Specified tax-exempt entities

    Government entities, Indian tribal governments, Alaska Native corporations and organizations exempt under chapter 1 can own the building. They give the designer a written allocation, recorded in Part IV.

  • Certifiers

    A qualified individual, an unrelated licensed engineer or contractor, certifies the property. For retrofit property, a qualified professional who is a licensed architect or engineer certifies it. They do not file the form; Part III lists them.

The instructions say individuals and business entities that qualify to claim the deduction for energy efficient property (EEP) placed in service during the tax year file Form 7205. The filer checks one status at the top.

Official sources and the blank

Do it all with indox

View all 99 tools

Questions about Form 7205

Who can claim the section 179D deduction on Form 7205?

The instructions name commercial building owners, and designers of energy efficient property installed on or in buildings owned by specified tax-exempt entities, when the deduction is allocated to them in writing.

Which revision of Form 7205 applies?

The instructions say to use the December 2023 revision for property placed in service after December 31, 2022, and the December 2022 revision for property placed in service before January 1, 2023.

What if there are more than four buildings?

Complete and attach as many Forms 7205 as needed. The instructions say to complete line 3 on only one of them, with the combined total for all properties.

What does energy efficient property not include?

The instructions say the cost of EEP does not include the total cost of the building or general renovation, and EEP does not include items such as ovens and fryers, manufacturing equipment, elevators or escalators, or exterior lighting.

Who completes the certification?

A qualified individual, an unrelated licensed professional engineer or contractor, for commercial building property. For retrofit property, a qualified professional who is a licensed architect or licensed engineer.

Is the deduction ending?

The instructions say P.L. 119-21, commonly known as the One Big Beautiful Bill Act, terminated it for property the construction of which begins after June 30, 2026.