Tax incentives are also proposed for energy efficient commercial and residential buildings in the Energy Policy Tax Incentive Act pending in the Senate. For commercial buildings, energy efficient lighting, HVAC, hot water, or building envelope investments that reduce energy and power costs by 50% or more (relative to ASHRAE Standard 90.1-2001) would qualify for an owner tax deduction of up to $2.25 per square foot of the improved property. The measure includes low-rise residential and residential rental property improvements. For buildings that fail to achieve 50% energy reductions, a reduced deduction is allowed.
Energy Efficient Buildings Tax Incentives Gain Support
The Cool and Efficient Building Act (H.R. 1241) that allows a 20-year depreciation of installation costs of energy efficient HVAC systems in non-residential buildings continues to gain support in the U.S. House of Representatives. The measure, which was introduced by Rep. Peter Hoekstra (R-2-MI), has 35 co-sponsors and is pending before the House Ways and Means Committee.