The Energy Policy Act was implemented by President Bush on August 8, 2005. Since 1992,  this is the biggest overhaul of our nation's energy policy that is estimated to cost about $14.5 billion over 10 years.

What is the Energy Policy Act?

This act contains a hefty provision that includes a tax deduction of up to $1.80 per square foot. It is to encourage building owners  to invest in updating their building by replacing and adding energy - efficient systems. Not only will the owners benefit by the tax deduction, but also by receiving smaller energy bills every month.

How is Energy - Efficient Property Defined?

The energy - efficient property is defined by any "commercial building property that is certified to reduce total annual energy and power costs to at least 50% less than a building satisfying the 90.1-2001 Standard. Qualifying systems include the following:

1. Interior lighting systems

2. Heating, cooling, ventilation and hot water systems

3. Building envelope

In addition, the property must:

1. Be otherwise depreciable property

2. Located in the United States

3. Paid to be constructed by the taxpayer seeking the deduction

Want to know more?

Got questions? Need more information? Contact our office to set up a meeting to find out more on the Energy Policy Act.