Tax Deduction Details:

  • The tax deductions are an accelerated depreciation of capital assets (39 years accelerated to 1 year)
  • The improvements must be completed and placed in service in 2006, 2007, or 2008
  • The improvements must lower your energy costs by a specified amount as compared to ASHRAE 90.1-2001
  • The deductions are for commercial buildings
    • Rental residences four stories or above qualify
    • Non-profit organizations do not qualify
  • The deductions are the lesser of the

Square footage * a dollar amount (see below)

or

The total cost of the qualifying improvement

  • For the whole building: $1.80/sq.ft.
  • For individual systems (Lighting, HVAC, Building Envelope): $0.60/sq.ft.

Supporting Documentation:

  • The following is a powerpoint presentation (in PDF format) describing how EPAct applies to your organization:

Green Buildings Now Rewarded With New Federal Tax Incentives

                           

  • The following is an article we recently published with CCH about the Energy Tax Incentives:

The Energy Tax Incentives Act of 2005 Contains Some Timely Creative Thinkng

                             

  • The following is an article we recently published with CCH about the expansion to the Federal Solar Tax credit:

The New Federal Solar Tax Credit's Major New Tax Benefits

Below are recently published articles about the new incentives and the energy improvement industry: