100% Bonus Depreciation Is Now Permanent—Here’s How Retail CRE Owners Can Cash In

Petco thins its fleet with 25 store closings planned this year Petco is set to close 25 stores this year, on top of the 25 it shuttered last year, as it becomes the latest retailer to trim its store fleet. The San Diego-based company disclosed it was doing roughly two dozen closings when it reported second-quarter earnings recently. Petco's net sales of $1.5 billion decreased 2.3% compared with the prior-year period, and comparable sales dipped 1.4% year over year...

Hey, Retail Real Estate Rockstars! Property owners could lose tens of thousands in federal tax savings on building upgrades starting July 2026. The Big Beautiful Law (H.R. 1) ends the Energy Tax Deduction for Commercial Buildings (§ 179D) . If you’ve been counting on tax savings for energy upgrades like HVAC, lighting, or windows, here’s what you need to know to plan smart. What § 179D Gave You vs. What’s Changing Before, § 179D let building owners (including retail landlords) take tax deductions for energy-saving improvements, things like LED lighting, efficient HVAC systems, and better insulation or windows. These deductions often meant real money saved when making upgrades. Now, under H.R. 1: Starting July 1, 2026 , new construction or upgrade projects will no longer qualify for § 179D deductions¹. That means no tax savings for HVAC, lighting, or other energy upgrades if work begins after June 30, 2026 . Projects already started before that date may still qualify. Key Points The energy tax deduction (§ 179D) ends for projects that begin after June 30, 2026¹. Retail owners planning upgrades should move quickly to use the benefit before it disappears. Budgets, return on investment (ROI), and financial models need to be updated for this change. Data You Should Know § 179D savings were often measured in dollars per square foot of upgrades across lighting, HVAC, and building envelope systems². The repeal impacts all commercial building owners starting new projects after mid-2026¹. For example, a $250,000 HVAC upgrade that qualified under § 179D could deliver $25,000–$50,000 in tax deductions, savings that disappear once the repeal takes effect. Without § 179D, payback periods could stretch longer with ROI dropping by 10–20% on similar projects². What This Means for Your Property If you’ve been planning energy-efficient upgrades and counting on § 179D: Your ROI will be lower — you’ll need to depend on state programs, utility rebates, or direct energy savings. Any deals assuming § 179D must be re-checked and adjusted. Getting upgrades done before June 30, 2026 can help maintain property value since future buyers won’t have this tax break. If you’re a retail property owner looking at upgrades, whether for lighting, HVAC, windows, or insulation, this repeal changes the game. Let’s review your projects, see if they can begin in time to qualify, and adjust your cash flow plan. Call or DM me to map out your best move. With § 179D ending on June 30, 2026, what upgrades will you push forward now and will they still hold value once the tax break is gone? #179DRepeal #EnergyEfficientTaxDeduction #CommercialBuildingUpgrades #TaxSavingsForHVACLighting #HR1EnergyTax