The Energy Policy Act of 2005 was signed into law in August 2005, and was recently extended through 2013 as part of the Troubled Assets Relief Program (TARP). Under this program, building owners are eligible for tax deductions based on the increased efficiency of their buildings. These deductions can add up to $1.80 per square foot for qualifying buildings. This is divided between building envelope, lighting, and HVAC systems in the amount of $0.60 per square foot each.
However, in the case of Government-owned buildings, the designer of the qualifying system is allowed to take this deduction. For most projects, this would mean that the architect would qualify for deductions related to envelope improvements. The mechanical engineer would qualify for improvements to the HVAC system, and the electrical engineer or lighting designer would qualify for lighting improvements. In this session, the presenters will discuss both the design and accounting rules for qualifying. The presenters will show how a project could qualify through the design process, and follow up with the necessary steps to get approved by the IRS. As a result, attendees should be more aware of the project types that qualify, the systems that will help them achieve these deductions, and how to go through the process of submitting their deductions to the IRS. These deductions can be substantial, and can significantly decrease the tax burden of the qualifying design firm. With the current economic climate, these deductions can help a firm’s bottom line, while still encouraging responsible, energy efficient design. |
