You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings (Energy Tax Incentive Section 179D).
The Energy Policy Act of 2005: Includes a tax benefit for investments in energy-efficient commercial building property designed to significantly reduce the:
Section 1331 of the Energy Policy Act of 2005 provides for and allows a deduction for energy efficient commercial buildings that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) standard. A maximum deduction of $1.80 can be obtained if a reduction in energy consumption reaches 50%. Additionally, a partial deduction of $0.60 per square foot for building sub systems.
Partial Deduction: Owners of new and existing buildings (placed in service prior to the date of enactment) may earn a partial deduction of $0.60 per square foot per “system” for upgrading one or two major building Sub Systems.
Sub-Systems: Lighting, HVAC, Hot water and Building Envelope.
Who can benefit from the Energy Audit and Energy tax deduction?
- The person or organization that pays for construction. This is usually the building owner, but for some HVAC or lighting efficiency projects, it could be the tenant.
- Building or renovation must have been put into service after December 31, 2005
- Building must be at least 50,000 sq feet , or spending more than $100, 000 annually in utility (electric, gas, water)cost.
Scope of Services
Our team of experts will conduct a physical inspection and perform an Energy Efficiency Study (EES) to calculate, determine and certify the allowable deductions for part or all of the cost of Energy Efficient lighting, HVAC, hot water and building Envelope.