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Can I Get a Tax Deduction for Events2HVAC?

Jun 20

Written by:
6/20/2012 8:44 AM  RssIcon

Potential Events2HVAC users have recently asked if they can get a tax deduction for installing Events2HVAC in their buildings. The short answer to that is, “It depends.”

In 2005, the U.S. Congress passed the Energy Policy Act, which was later extended in the Emergency Economic Stabilization Act of 2008 to run through December 31, 2013. These acts provide a significant tax deduction for non-residential buildings, up to a maximum of $1.80 per square foot of improved facility space resulting in a 50% energy reduction. However, there are some important restrictions and requirements in order for a facility owner to claim this deduction.

First to note, churches are not eligible for this deduction. However, public schools and other public entities can allocate the deduction to the person primarily responsible for designing the property in order to receive a benefit in a round-about way.

Second, if a retrofit will not achieve 50% energy reduction, individual system improvements can qualify for a $0.60 deduction per square foot if they meet the following targets (modified in March 2008):

Interior lighting systems

20% energy reduction

Heating, cooling, ventilation and hot water systems

20% energy reduction

Building envelope

10% energy reduction

It would be easy to achieve 20% HVAC energy reduction with Events2HVAC in a building where HVAC equipment is currently running all day, but only 40% of the rooms are occupied at a given time. However, in a building where individual rooms are already scheduled manually for HVAC needs, 20% energy reduction would be difficult or impossible to achieve.

Third, the building and the Events2HVAC implementation would need to be inspected by an engineer or contractor licensed in the building’s jurisdiction. These inspections must meet the guidelines set by the National Renewable Engineering Laboratory, which also provides valuable guidance for calculating expected energy savings.

Fourth, in addition to the general rules summarized above, there are some specific rules for government buildings and for partnerships and s corporations.

This 179D Calculator provided by the U.S. Department of Energy might help you determine tax deduction eligibility for large projects. For Events2HVAC specifically, our Potential Savings Whitepaper might also be a valuable tool.

Finally, as part of his Better Buildings Initiative, President Obama has asked congress to change this tax deduction to a tax credit in the same amount in order to stimulate more investment in energy efficiency. To date, no such bill has been introduced.

About Us

Founded in 1998, Streamside Solutions provides software products, solutions and services for the building automation industry.


Phone: (888) 320-4277

        

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