Legislative Incentives

Legislative Incentives

Federal :EPACT 2005, Section 179D

EPAct 2005 is a tax incentive aimed at commercial, industrial and public facilities to reduce annual energy consumption and carbon footprint. 

Owners of new & existing buildings may earn a deduction of up to  $.60 per square foot for lighting, $.60 for HVAC and $.60 for building envelope. The consultant can take the tax benefit on behalf of a public entity.

Scope of Work:

•  Conduct a physical inspection & perform an Energy Efficiency

   Study (EES) to calculate, determine and certify the allowable  

   deductions.

•  Prepare all the associated tax work required by the IRS for the

   cost segregation and energy tax studies

 

State Legislation for Performance Contracting 

Many states have enacted legislation to allow public school systems, local and county governments to make energy efficiency improvements to their buildings and use the cost savings to fund those improvements.  

Typically, the legislation provides the school district or government entity to have the ability to borrow funds without passing a ballot issue for the authority to borrow. This borrowing authority has provided the ability to save millions in utility bills and operating costs, and all at no additional taxpayer expense. 

In all cases, the weighted payback of all Energy Conservation Measures must be within a specified time period that is defined in the legislation.

 

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