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Commercial Tax Incentive

EP Act05 provides a number of important incentives to reduce energy costs. The most important part of EP Act05 for institutional and commercial buildings is section 1331, which provides a tax deduction up to $1.80 per square foot for the full building and up to $0.60 for partially qualifying property. The provision applies to qualifying new construction. renovation and retrofit projects put in service for January 1st, 2006 to December 31st, 2013.

The incentive is in the form of tax deductions for energy efficiency in interior lighting, HVAC, and building envelope. To qualify for the full tax deductions, the energy-efficient property must produce at least 50% energy and power cost savings compared to a reference building that meets the minimum requirement of ANSI/ASHRAE/IESNA Standard 90.1-2001.

Residential Tax Incentive

By upgrading your heating and air conditioning system to an Energy Star rated system, you could qualify to get a tax credit of 30% of the purchase price with a $1,500 cap. The types of systems include electric, natural gas, propane, and oil. There are various minimum efficiency requirements depending on each type of system, so be sure to check the system before putting this credit on taxes. Energy companies continuously raise their rates; therefore this is an extremely important tax credit. Heating systems are essential and even having it at a low temperature can still cost a fortune. By upgrading your system you can not only save on your monthly energy bills but also get up to a $1,500 incentive to do so.

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