EPAct Information

What is EPAct?
The Energy Policy Act of 2005 (EPAct) represents a major overhaul of our nation's energy policy and includes special financial incentives designed to reduce the initial cost of investing in energy-efficient lighting and other building systems through an accelerated tax deduction.

EPAct focuses on increasing energy efficiency in the following systems:

• the building envelope
• interior lighting
• HVAC and hot water

Each of these systems is eligible for a deduction of $0.60/square foot for a combined, total deduction of up to $1.80 per square foot. The deductions can be made separately as projects are completed.

What projects qualify under EPAct?
For projects completed by December 31, 2013, a commercial building tax deduction can be claimed that covers up to the entire deductible cost of investing in the installation of energy-efficient commercial building property, capped at $1.80/square foot provided that:

• the project must be certified to reduce total annual energy and power costs to at least 50% less than a Reference Building satisfying the requirements of ASHRAE/IESNA 90.1-2001 solely through changes to the building