EPAct 2005 Qualifications

To qualify for the EPAct 2005 tax deductions, a commercial building property must:

• Be located in the U.S. and fall within the scope of ASHRAE/IES Standard 90.1-2001; and
• Receive an upgrade/installation of:
  (1) interior lighting system, or
  (2) heating/cooling/ventilation/hot water systems, or
  (3) building envelope that was put in service between Jan. 1, 2006 and Dec. 31, 2008
• Be certified as being an “energy-efficient property,” defined as one that has 50% of the total annual energy and power costs of a building satisfying ASHRAE/IES Standard 90.1-2001.

To receive the tax deduction, the deduction must:

• Not exceed the cost of the upgrade, including materials, labor and design; and
  
• Be taken in the taxable year the property or upgrade is placed in service (2006 - 2008); and
  
• Be calculated based on the square footage of the upgraded building.
  – Up to $1.80/sq. ft. for “energy-efficient property”
  – Up to $0.60/sq. ft. each for interior lighting, HVAC/hot water and building envelopes

To claim the tax deduction*, you must be:

• The owner or entity who paid to have the commercial building constructed or renovated
  
• The party primarily responsible for designing the publicly owned property

* Circumstances vary widely. Before pursuing or claiming any deduction described in this brochure, consult your tax advisor concerning your specific tax situation and potential changes in the applicable tax laws.

For additional information: Lighting Tax Deduction