Energy – Efficient Commercial Buildings Tax Deduction

Incentive Type: Corporate Tax Deduction
Technology, Energy
Eligible Sector:
Financial Incentive
Time Period:
FY 2015
Governing Body: U.S. Internal Revenue Service
What’s it worth?: $1.80 per square foot

The Efficient Commercial Buildings Tax Deduction is available for energy-efficient commercial buildings with qualifying systems placed into service between January 1, 2006 and December 31, 2007. A tax deduction between $0.30 and $1.80 per sq. ft. is awarded to owners of new or existing buildings with installed energy efficient:

  • Interior lighting
  • Building envelop
  • Heating
  • Cooling
  • Ventilation
  • Hot water systems

These systems are required to reduce cost by 50% or more in comparison to meeting minimum requirements. The program first ended in 2013 but was extended in 2014 to all projected completed by January 1, 2015; projects placed in service after this date are note eligible for this tax deduction.