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Maximize Federal Tax Benefits for Energy Efficiency Improvements

Architects and contractors are eligible for a Federal tax benefit of up to $1.80 per square foot for the design of energy-efficient public buildings placed into service after January 1, 2006. A special provision of the 2005 Energy Policy Act (EPACT) allows "the person primarily responsible for designing the property (the designer)," to take the tax benefit available for qualifying improvements to such facilities.

Information regarding Federal Tax Benefits for Energy Efficiency Improvements is also available as a downloadable PDF file.

DID YOU KNOW?

Thanks to the efforts and support of the American Institute of Architects (AIA), benefits originally awarded to architects through EPACT have been extended through December 13, 2013.

What Needs to Be Done?

In an effort to promote energy efficiency improvements in public buildings, EPACT legislation contains an innovative incentive for architects and contractors. Qualified non-taxable organizations must sign a "designation letter" which identifies that your organization has been a "Principal Designer" of the energy efficiency improvements in lighting, HVAC or building envelope. The Principal Designer(s) are then able to claim the qualifying tax benefits (currently a maximum of $1.80 per square foot.)

The IRS has established stringent rules for how your allowed tax deductions must be computed. An independent and licensed engineering firm, utilizing approved software and procedures, must compute and certify the benefit to which you are entitled. As part of this process, you are provided with a certification report, containing all information necessary to support the justification for your designated tax deduction.

How Do You Benefit?

Tax Deductions
You could qualify for a tax deduction of potentially hundreds of thousands of dollars or more, depending on the type of energy efficiency improvements made to government-owned Public Buildings.
Competitive Advantage
Archictects and Contractors knowledgeable about EPACT related tax benefits are able to bid Public Building projects more competitively, giving them an edge in the bidding process.
Customer Satisfaction
Commercial Building clients eligible for the EPACT tax benefit will have an increased level of satifaction and loyalty to you.