As of January 1, 2006, a new deduction for expenses incurred in construction or retrofitting for energy-efficient commercial buildings is available through the Commercial Building Tax Deduction section of the Energy Policy Act of 2005, signed last August. Limited to $1.80 per square foot of the property, allowances are offered for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems. Effective for property placed in service through December 31, 2007, the deduction is being promoted by the Commercial Building Tax Deduction Coalition, convened by the National Electrical Manufacturers Association (NEMA), to ensure that the provision is implemented correctly and to promote awareness and information about the benefits of energy-efficient commercial buildings.
A new website, www.efficientbuilding.org, has been developed to support the coalition's mission, and offers information and guidance on the new tax incentive. In addition, the site will promote the provision's proper implementation, and keep the community informed about the activities of the coalition.
Acting as a resource for all commercial building tax deduction information, the coalition hopes that it will 'eventually become a major vehicle for promoting energy-efficient technologies,' says Kyle Pitsor, NEMA vice president of government relations.
For more information on the new tax incentive and how it works, visit