[bldg-sim] IRS Unveils Procedure Enabling Commercial Property Owners to Qualify for Energy Efficiency Deduction
Drury.Crawley at EE.DOE.GOV
Drury.Crawley at EE.DOE.GOV
Fri Jun 2 20:22:42 PDT 2006
IRS Unveils Procedure Enabling Commercial Property Owners to Qualify
for Energy Efficiency Deduction
IR-2006-88, June 2, 2006
WASHINGTON — The Internal Revenue Service today issued an advance
copy of a notice on how commercial building owners or leaseholders
can qualify for the tax deduction for making their building energy
efficient. The notice establishes a process to certify the required
energy savings in order to claim the deduction.
The commercial building deduction, which was enacted in the Energy
Policy Act of 2005, allows taxpayers to deduct the cost of
energy-efficient property installed in commercial buildings.
The amount deductible may be as much as $1.80 per square foot of
building floor area for buildings that achieve a 50-percent energy
savings target. The notice provides that buildings below the
50-percent threshold may, nevertheless, qualify for a deduction of up
to 60 cents per square foot of building floor area if they meet a
16⅔-percent energy savings target.
Before claiming the deduction, the taxpayer must obtain a
certification that the required energy savings will be achieved.
Today’s notice prescribes the content of that certification and the
qualifications that must be met by the person providing the
certification.
The notice also announces that the Department of Energy will create
and maintain a public list of software that must be used to calculate
energy savings for purposes of providing the certification. It also
provides a process that software developers must use if they desire
to have their software included on that list.
http://www.irs.gov/newsroom/article/0,,id=158395,00.html
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