The Energy Policy Act of 2005 included a tax incentive 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. The deduction is limited to $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems. The provision is effective for property placed in service from January 1, 2006 through December 31, 2008.
A broad-based coalition of business, trade, government, energy efficiency, and other groups and organizations was convened to support the extension of the deduction to realize its energy saving potential. The Commercial Building Tax Deduction Coalition is working to ensure the provision is implemented smoothly and to promote awareness and information about its benefits, and energy efficiency improvements in commercial buildings.
See the Commercial Building Tax Deduction Coalition webpage