Commercial
Building
Tax Incentives
Commercial
Building
What is the tax incentive for commercial buildings?
A tax deduction of up to $1.80 per square foot is available to owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for comparable reductions from any one of three building systems—the building envelope, lighting, or heating and cooling system—that meets goals consistent with achieving the 50% savings for the entire building. An interim system-specific goal for lighting is provided directly in the legislation and is valid until and unless the IRS issues a different final regulation. The interim lighting provision allows prorogated deductions from 30 cents to 60 cents per square foot for lighting systems as described below.
These deductions are available for buildings or systems placed in service from January 1, 2006 December 31, 2007


























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