IRS Code 179 (d) – Energy Policy Act of 2005 (EPACT)
The Energy Policy Act of 2005 included a new tax incentive, backed and advocated by the National Electrical Manufacturers Association (NEMA) and the Natural Resources Defense Council (NRDC), to improve the energy efficiency of commercial buildings. The “Commercial Building Tax Deduction” establishes a tax deduction for expenses incurred for energy efficient building expenditures made by a building owner. A deduction of up to $1.80 per square foot is available for buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting: the building envelope, lighting, or heating and cooling systems.
Partner Energy can help you determine whether your energy efficiency project qualifies for the tax credit. Our engineers will use IRS approved software to model the energy consumption of your building to determine if your energy efficiency project meets the minimum requirements to qualify.