EPAct 2005 instructs the Secretary of the Treasury to modify its tax forms so that the Commercial Buildings Deduction can be implemented.
The energy saving design features and the total project costs, as well as the square feet of the affected building space(s) must be documented. For lighting this would include information such as fixtures, ballasts, lamps, wiring, and lighting controls. The inspector would certify that the installation is in accordance with the design. The deduction values specified are “caps” (maximums) and the deduction is the cost of the energy efficient project up to the cap. Forms showing the technical basis for the tax deduction are to be retained by the taxpayer, not sent in with the tax return (see certification requirements).
Building owners and managers, and electrical and lighting professionals, are encouraged to seek the consultation of a tax expert. |
“SEC. 1331. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) IN GENERAL.—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations), as amended by this Act, is amended by inserting after section 179C the following new section:
‘‘SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
‘‘(a) IN GENERAL.—There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial building property placed in service during the taxable year …”
“(b) CONFORMING AMENDMENTS.—
(1) Section 1016(a) is amended by striking ‘‘and’’ at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting ‘‘, and’’, and by adding at the end the following new paragraph:
‘‘(32) to the extent provided in section 179D(e).’’.
(2) Section 1245(a), as amended by this Act, is amended by inserting ‘‘179D,’’ after ‘‘179C,’’ both places it appears in paragraphs (2)(C) and (3)(C).
(3) Section 1250(b)(3) is amended by inserting before the period at the end of the first sentence ‘‘or by section 179D’’.
(4) Section 263(a)(1), as amended by this Act, is amended by striking ‘‘or’’ at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting ‘‘, or’’, and by inserting after subparagraph (J) the following new subparagraph:
‘‘(K) expenditures for which a deduction is allowed under section 179D.’’.
(5) Section 312(k)(3)(B), as amended by this Act, is amended by striking ‘‘179, 179A, 179B, or 179C’’ each place it appears in the heading and text and inserting ‘‘179, 179A, 179B, 179C, or 179D’’.
(c) CLERICAL AMENDMENT.—The table of sections for part VI of subchapter B of chapter 1, as amended by this Act, is amended by inserting after section 179C the following new item:
‘‘Sec. 179D. Energy efficient commercial buildings deduction.’’.” |
