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The Energy Policy Act of 2005 went into effect in January 2006, and it offers tax credits for purchasing energy--efficient appliances and products. It provides a tax deduction for commercial buildings that reduce annual energy and power consumption by 50 percent, and it originally only applied to buildings or systems placed in service in 2006 or 2007. However, late last year, Congress extended the EPAct of 2005 to encompass construction through 2008.
The EPAct of 2005 allows for a deduction equal to the cost of the energy-efficient property up to $1.80 per square foot. Interior lighting systems can receive a 60-cent-per- square-foot deduction, depending on the reduction of energy use below ASHRAE 90.1-2001.
Contractors now have more time to take advantage of the EPAct’s incentives and tax breaks. For more information, visit the Federal Energy Regulatory Commission’s (FERC) Web site at www.ferc.gov. EC
