The Energy-Efficient Commercial Buildings Tax Deduction (CBTD), which was created by the Energy Policy Act (EPAct) of 2005 and extended by the Energy Independence and Security Act (EISA) of 2007, is scheduled to expire on December 31st of 2013.
This special tax deduction rewards investment in energy-efficient improvements made to existing 1) building envelopes; 2) HVAC/hot water systems; and/or 3) permanently installed interior lighting systems. A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. Deductions are taken in the year when construction is completed.
While commercial building owners may be eligible to get tax deductions for these efforts, deductions associated with government buildings and not-for-profits are transferred to the energy efficiency vendor. The energy efficient technologies often implemented to secure the deductions include: Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Siding, Roofs, Comprehensive Measures/Whole Building, Tankless Water Heaters, Heat Pump Water Heaters, to name a few.
Bright Energy Services can help guide you through this process. Our team will handle the planning and implementation of these projects as well as the energy modeling that is required by law in order to take the deductions. If you are planning these types of energy efficiency upgrades, do not wait as these deductions are scheduled to expire by the end of the year. We will work with your accountant to help you take advantage of these deductions. Call today. 347-470-7090