The Energy Policy Act of 2005

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.

EPAct 2005’s new incentive for lighting and building efficiency

The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap. This website, developed by the Lighting Systems Division of the National Electrical Manufacturers Association (NEMA) in cooperation with the Commercial Building Tax Deduction Coalition, provides education about the lighting aspects of the Deduction and resources to help with its implementation. It was created as the first of a series of lighting education initiatives by the lighting industry addressing lighting quality and efficiency.

Having a licensed professional engineer as part of our team, we are qualified to perform the requirements of EPACT 2005, and supply our client(s) with certification for tax deduction purposes..