Energy Efficient Buildings Tax Incentives Gain Support
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.