EPACT 2005 and the
COMMERCIAL BUILDING TAX DEDUCTION

Need to find an EPAct 2005 Qualified Certifier (per IRS Notice 2006-52)? use the National Lighting Bureau's Searchable Directory: www.nlb.org

IRS Guidelines on Energy Efficiency Deductions for Commercial Properties

The Internal Revenue Service (IRS) just released its advanced notice detailing how commercial building owners or leaseholders can qualify for the tax deduction for making their buildings energy efficient. The IRS notice also establishes a process to certify the required energy savings in order to claim the deduction and explains how taxpayers can obtain certification. For details, visit http://www.irs.gov/pub/irs-drop/n-06-52.pdf.

The National Electrical Manufacturers Association (NEMA) convened a broad-based coalition of business, trade, government, energy efficiency, and other groups and organizations resulting in the Commercial Building Tax Deduction Coalition. They are working to ensure the provision is implemented smoothly while promoting awareness and information about its benefits, and energy efficiency improvements in commercial buildings. http://www.efficientbuildings.org/

NEMA Assessment of the energy Policy Act of 2005 (PDF 672 KB)

More Information on the Tax Incentives for Energy-Efficient Buildings and Products

On August 8, 2005, President Bush signed into the law the Energy Policy Act of 2005. The Energy Policy Act of 2005 provides a variety of tax incentives for homeowners, businesses, and manufacturers for purchase of energy efficient equipment and buildings, which will be available after January 1, 2006 and before December 31, 2007.

The Department of the Treasury has amended tax form 1040 to include a line for energy tax credits in the tax credit section and has issued regulations specifying what energy efficiency equipment and improvements for residential buildings qualify for tax credits. However, final IRS guidance on commercial buildings is still under development.

These resources provide information on what is currently known about the new tax incentives and will be updated as more information becomes available:

Energy Policy Act of 2005 Tax Incentives

ENERGY STAR

Tax Incentives Assistance Project (TIAP)

Alliance to Save Energy - New Energy Efficincy Home and Vehicle Tax Credits

Residential Energy Services Network (RESNET)

The Interstate Renewable Energy Council Database of State Incentives for Renewable Energy


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