Energy Policy Act 2005 Tax Deductions for Commercial Buildings (ES)

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial 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 any one of three building systems: the building envelope, lighting, or heating or cooling systems.

The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2008.

IRS Notice 2006-52 (6/2/2006) provides guidance on deduction for energy efficient commercial buildings.

See ENERGY STAR brochure for commercial tax deductions