The Energy Policy Act of 2005- Commercial Buildings Tax Deduction
What is EPAct?
Beginning on December 31, 2005, the Energy Policy Act of 2005 (EPAct) put into effect the Energy Efficient Commercial Buildings Tax Deduction. This deduction allows building owners who have installed qualifying energy efficient equipment in new or existing buildings to deduct the entire cost of the equipment upgrade in the year the equipment is placed in service, subject to a cap. Ensuring that the energy efficient equipment meets the qualifications for the tax deduction is the responsibility of the building owner and certifying third party.
Qualifying Equipment Includes:
- Energy Efficient Lighting: up to $.60 per square foot
- Energy Efficient HVAC: $.60 per square foot
- Energy Efficient Building Envelope: $.60 per square foot
* Total deduction can be up to $1.80 per square foot for qualifying measures
How Do I Qualify?
In order to file for the deduction the building owner must have the qualifying equipment examined and certified by a knowledgeable building systems professional. This can only be done through hands-on inspection of the facility and the equipment itself. Several tax companies, accounting firms, and energy consultants will certify the building owner without ever visiting the property to verify it meets EPAct requirements. As of late, this has left several commercial property developers open to auditing from the Internal Revenue Service.
Where Do I Start?
As a C-10 Electrical Contractor with experience auditing over 50 million square feet, Sun Industries has the credentials to certify any type of property eligible for the Energy Efficient Commercial Buildings Deduction. Sun Industries specializes in the audit and design of energy efficient building systems and is equipped to perform detailed inspections of lighting, HVAC, and building envelopes. By examining all three efficiency measures Sun Industries ensures that the building owner will receive the maximum tax deduction possible.
Contact us to have Sun Industries certify your building
For more information on commercial lighting tax deductions:
http://www.lightingtaxdeduction.org/tax_deduction.html
or
http://www.energy.gov/taxbreaks.htm
Download a copy of The Energy Policy Act of 2005
(EPAct2005-Public-Law.pdf, 1.5MB).
Download Section 1331 of the Energy Policy Act
(EPAct-Provision1331.pdf, 55KB).
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