When Buildings Talk, We Listen.

Energy Efficient Commercial Buildings Deduction

Maximize Your Financial Return for Your Energy Efficient

Commercial Building

Summary:
The federal Energy Policy Act of 2005 established a tax deduction for energy-efficient commercial buildings
applicable to qualifying systems and buildings placed in service from January 1, 2006, through December 31,
2007. This deduction was subsequently extended through 2008, and then again through 2013.
A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install (1)
interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce
the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum
requirements set by ASHRAE Standard 90.1-2001. Energy savings must be calculated using qualified computer
software approved by the IRS.

Deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building
envelope, or heating and cooling systems meet target levels that would reasonably contribute to an overall
building savings of 50% if additional systems were installed. Summary from www.dsireusa.org

SkyeTec’s Role:
SkyeTec has on staff the licensed professionals to perform the required functions of certifying qualifying levels
of energy efficiency for commercial buildings. We have the necessary energy modeling experience and
expertise, the approved software and insurance in order to provide you with Certification documentation for
your tax deduction. We consult with you regarding current and future building projects to maximize the
financial benefits and incentives of energy efficiency. Please contact us today — email: info@skyetec.com.

Sources:
• Section 1331 of the Energy Policy Act of 2005 (Public Law 109-58)
• Internal Revenue Code § 179D ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION

Extensions:
• Section 204 of the Tax Relief and Health Care Act of 2006 (Public Law 109-432) through Dec. 31, 2008
• Section 303 of the federal Energy Improvement and Extension Act of 2008 (Public Law 110-343) through
Dec. 31, 2013

Rules and Guidelines:
• IRS Notice 2008-40
• IRS Notice 2006-52
• Energy Savings Modeling and Inspection Guidelines for Commercial Building Federal Tax Deductions
Second Edition Technical Report NREL/TP-550-40467 May 2007, National Renewable Energy Laboratory