The Energy-Efficient Commercial Building Deduction was created by the Energy Policy Act of 2005, in recognition of the fact that a substantial portion of U.S. energy consumption is attributable to commercial buildings. The law provides a robust tax deduction to help offset the cost of energy efficiency projects.
Since it’s inception of 179D it has assisted thousands of building owners increase profitability. It has also increased job creation in the electrical trades, where energy-efficiency retrofits create large numbers of high-paying jobs, while simultaneously reducing our nation’s dependence on foreign oil and thereby increasing America’s energy security.
Potential clients planning energy efficiency projects should circle Dec. 31, 2013 on the calendar. Under current law, that’s the last day that a project can be put in service and qualify for tax deductions under EPAct — the Energy Policy Act of 2005. EPAct tax deductions, also known as Section 179D deductions, for LED lighting alone that can be .60 per square ft. of retrofitted space.
It’s possible that Congress will decide to extend the deductions into 2014 and beyond, but given the concern over deficits in Washington, commercial clients who can get a project into service by the end of 2013 might be wise to do so.
Congress is now on its summer recess, but just before leaving, the Senate made the Energy Savings and Industrial Competitiveness Act (S. 1392) the official order of business on the Senate floor upon the members’ return on September 9th. The bill was drafted by Senators Shaheen (D-NH) and Portman (R-OH) and contains useful provisions on building codes, industrial energy efficiency, and efficiency improvements to federal facilities.
Until Washington Acts on an Extension and Modification of Deduction for Energy-Efficient Commercial Buildings, (Introduced 9/20/12 as S.3591) the EPAct 179D will sunset at the end of 2013.
As LED professionals and all professionals committed to energy efficiency, we do not want to see the program end. The clock is ticking…
- Politicians Join The LED Movement (getleducated.com)