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Energy-Efficient Upgrades

To make the most of the two year window for taking advantage of tax deductions for energy-efficient upgrades provided by the Energy Policy Act, you need to understand what is available to you. EPAct offers two kinds of tax deductions:

• If you upgrade your lighting, HVAC/hot water, and building envelope to surpass the ASHRAE 90.1-2001 standard by 50%, you can take a one-time whole building tax deduction of up to $1.80 per square foot.
• Upgrading any one of your systems (lighting, HVAC, or building envelope systems) to surpass the ASHRAE 90.1-2001 standard by 25-40%, can bring you a significant tax deduction. Under EPAct 2005, this is known as a partial deduction.

Either way, you can significantly reduce the cost of your energy-efficient upgrades. For example, a building with 100,000 square feet of applicable energy-efficient improvements would see a $180,000 tax deduction from the whole building route.

You will need to determine whether a whole or partial deduction method best suits your needs—– and achievable by the December 31, 2007 deadline.

Let Advance show you why your lighting should be the first place to look to take advantage of EPAct 2005 tax deductions.