In the News

EPAct And Business: Still time for businesses to benefit

The Energy Protection Act of 2005 was the most significant change in energy policy in the United States in decades.

The Energy Policy Act of 2005 significantly changed the role to Federal Energy Regulatory Commission role in the electricity and natural gas markets. The Commission has acted to encourage more investment in the nation’s natural gas infrastructure.

The Energy Policy Act of 2005 offers benefits to both business and individual taxpayers.

EPAct 2005 enables taxpayers to deduct the cost of energy-efficient equipment and improvements in commercial buildings. In December, Congress extended the energy efficiency law until Dec. 31, 2008. It had been due to expire at the end of the year.

The deductible amount may be as much as $1.80 per square foot for buildings that achieve 50-percent savings in regulated energy (measured by annual energy cost).

Buildings below the 50-percent threshold may qualify for a deduction of up to 60 cents per square foot by meeting a 16 2/3-percent energy cost savings target for hot water, HVAC or lighting systems, compared with a reference building.

Buildings that increase the efficiency of their lighting can also qualify for a partial deduction under “interim guidance.”

All energy savings must be certified by qualified individuals in order to receive the deduction.

Certification can be obtained from a licensed engineer or contractor, and must employ software endorsed by the U.S. Department of Energy.

The tax deduction extension is available for buildings placed in service by Dec. 31, 2008.