[Bldg-sim] EPAct tax credits for private non-profits andmultifamily

[David Reddy]

  Thanks for all the feedback.  After I submitted this, I did some more 
searching and found this list of FAQs on the credit:

http://www.efficientbuildings.org/about_the_provision.html

Although I have not yet gone to EPAct to confirm, this information is 
inline with comments made by others.  Here are the some applicable FAQs 
along the lines of the questions I posed:

*What types of buildings will qualify? What types of expenditures will 
qualify?*

Section 1331 of H.R. 6 provides that energy-efficient commercial 
building property is defined as property that is:

   1. Installed on or in any building located in the United States that
      is within the scope of Standard 90.1-2001, Energy Standard for
      Buildings Except Low-Rise Residential Buildings, of the American
      Society of Heating, Refrigerating, and Air Conditioning Engineers
      and the Illuminating Engineering Society of North America;
   2. Installed as part of (i) the interior lighting systems, (ii) the
      heating, cooling, ventilation, and hot water systems, or (iii) the
      building envelope; and
   3. Certified as being installed as part of a plan designed to reduce
      the total annual energy and power costs of interior lighting
      systems, heating, cooling, ventilation, and hot water systems of
      the building by 50 percent or more when compared to a reference
      building, which meets the minimum requirements of Standard
      90.1-2001 (which came into effect on April 2, 2003).


*Are churches eligible for the deduction?*

No. Although religious buildings are in 90.1 and they don't pay taxes, 
they are not government buildings, so churches don't qualify.

Thanks again for comments!
-DR

On 9/17/2010 3:17 PM, Rader, Matt wrote:
>
> 1.  It is not available for non-profits of any sort, only government 
> owned buildings.  There is a white-paper out there saying that because 
> they don't explicitly omit non-profits from the rules that you can 
> take it until someone says you can't.  My company has worked with 
> Treasury on this issue (and a few other tax implications) and they 
> have said that it is outside the scope of the deduction.
>
> 2. Multi family and mixed use can qualify if the building is 4 stories 
> or more (all other building types do not have a story requirement).  
> Low-rise multi family is left out of the legislation.  They did this 
> to simplify since ASHRAE does not apply to low-rise buildings and 
> low-rise buildings have their own standard of efficiency.
>
> *Matthew Rader, LEED AP*
>
> Director, Cost Segregation and Green Building 179D
>
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> *From:* bldg-sim-bounces at lists.onebuilding.org 
> [mailto:bldg-sim-bounces at lists.onebuilding.org] *On Behalf Of *Nick Caton
> *Sent:* Friday, September 17, 2010 4:44 PM
> *To:* David Reddy; bldg-sim at lists.onebuilding.org
> *Subject:* Re: [Bldg-sim] EPAct tax credits for private non-profits 
> andmultifamily
>
> Hi David,
>
> 1. Off the cuff (I haven't delved into non-profit owners specifically) 
> -- I'm pretty sure the ability for a building owner/representative to 
> re-allocate calculated deductions as it's defined applies only to 
> property owned by the (paraphrasing) "Federal, State, or local 
> government entities."  I'm pretty sure this is spelled out in the 2008 
> IRS notice.  On the same token, I'd anticipate any designers claiming 
> re-allocated deductions from non-gov't building owners of any sort may 
> have some trouble, as the IRS hasn't explicitly allowed them to do so. 
>  A possible interpretation by an IRS auditor in that case may be that 
> you're trying to swindle a building owner out of a benefit explicitly 
> intended to reward them first.
>
> 2. I would advise caution regarding any residential projects, again 
> off the cuff without looking it up...  EPAct is much, much more than 
> efficient commercial building tax deductions, and I could definitely 
> see potential for a problem if any overlap occurred with 
> local/state/federal residential-specific tax breaks being pursued 
> simultaneous to the section 179D commercial tax deductions you're 
> referring to.  I'd advise re-visiting the original 2005 EPAct 
> legislation to see if there's any clarification regarding what exactly 
> is "commercial" for the purposes of section 179D.
>
> That's my take, hope it helps!  I'd be interested to hear your 
> conclusions when all's said and done,
>
> ~Nick
>
> cid:489575314 at 22072009-0ABB**
>
> * *
>
> *NICK CATON, E.I.T.***
>
> PROJECT ENGINEER
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> -----Original Message-----
> From: bldg-sim-bounces at lists.onebuilding.org 
> [mailto:bldg-sim-bounces at lists.onebuilding.org] On Behalf Of David Reddy
> Sent: Friday, September 17, 2010 3:07 PM
> To: bldg-sim at lists.onebuilding.org
> Subject: [Bldg-sim] EPAct tax credits for private non-profits and 
> multifamily
>
>   Has anyone investigated obtaining the EPAct 2005 tax credit for EE
>
> commercial buildings for private non-profits (503(c)(3))?  It seems like
>
> Section 3 in the 2008 amplification notice is pretty clear that the
>
> credit can be allocated for government-owned buildings, but does anyone
>
> have knowledge as to if this could apply to a 503(c) entity as well?
>
> Also, would a) privately, or, b) government-owned mid & high-rise
>
> residential, or at least the non-residential portions of these
>
> buildings, be applicable?  It seems if 90.1 covers these structures,
>
> then the credit might be applicable too, despite the fact the title only
>
> indicates 'commercial'.
>
> Any personal experiences or known sources for interpretations would be
>
> much appreciated.
>
> Thanks,
>
> David
>
> -- 
>
> David Reddy
>
> 360 Analytics
>
> Building Energy Analysis Consultants
>
> mail:       12354 16th Ave NE, Seattle, WA 98125
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