Country:United States
Policy status:In Force
Date Effective:2006
Policy Type:Economic Instruments>Fiscal/financial incentives>Taxes
Policy Target:Energy Sector>Energy Efficiency / Demand Reduction, Buildings>Non-Residential
Agency:Department of Treasury, Internal Revenue Service (IRS)
URL: (EPAct 2005)
Legal References:Emergency Economic Stabilization Act of 2008 (Div. B, Title III, Sec. 303)
Funding:USD 340M (Cumulative projected revenue effect from 2007-2011)

The Energy Policy Act of 2005 established the "Commercial Building Tax Deduction", a tax deduction for expenses incurred for energy efficient building expenditures made by a building owner. The deduction is limited to USD1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems. The tax deduction includes installation of qualified energy efficient heating/cooling, building envelope, and lighting equipment meeting a 50% energy reduction standard. This tax deduction, originally in the Energy Policy Act of 2005, was subsequently extended through 2008 by the Tax Relief and Health Care Act of 2006, and extended through 2013 by the Emergency Economic Stabilization Act of 2008 (HR-1424), and through 2016 by the Consolidated Appropriations Act of 2016.

Last modified: Fri, 17 Feb 2017 11:55:01 CET