Energy Efficiency Financial Federal Tax Incentive Benefits

In addition to energy savings, a tax deduction of up to $1.80 per square foot is available to owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost of a building above ASHRAE Standard 90.1-2001. Partial deductions of $.60 per square foot can be taken for improvements to one of three building systems—the building envelope, lighting, or heating and cooling system—that reduces total heating, cooling, ventilation, water heating and interior lighting energy use by 16 2/3% (16 2/3% is the 50% goal for the three systems spread equally over the three systems.)