Commercial Energy-Efficiency Federal Tax Credits

Owners and designers of new and existing energy-efficient commercial buildings may qualify for tax deductions under the Energy Policy Act of 2005. Tax deductions are based on the following criteria:

Tax Deduction Criteria
 Building Type  Portion of Building  Requirements  Available Tax Deductions
New or Existing Commercial Buildings Whole Building 50% better than ASHRAE* 90.1- 2001** $1.80 per sq. ft.
 
Existing Commercial Buildings HVAC and Hot Water System or Building Envelope 50% better than ASHRAE 90.1-2001** for HVAC and Hot Water System or Building Envelope $0.60 per sq. ft.
Interior Lighting System 25%-50% better than ASHRAE 90.1- 2001** $0.30 per sq. ft. on a sliding scale up to $0.60 per sq. ft.
* American Society of Heating, Refrigerating and Air-Conditioning Engineers
** Energy standard for buildings
Source: energytaxincentives.org, energystar.gov

Who is eligible for tax deductions?

Owners or tenants of new or existing private commercial buildings are eligible. Designers or architects of new or existing public buildings are also eligible.

When does the work need to be completed?

Work must be completed between January 1, 2006 and December 31, 2013.

What should I do?

Have a licensed contractor or engineer verify lighting power density and/or verify through energy modeling that the portion of the building being submitted for the tax credit is 25%-50% better than ASHRAE 90.1-2001 standards. Save all your receipts and equipment documentation. Consult the IRS or your tax advisor.

Where can I find more information?

Complete and updated information about tax credits is available online at energytaxincentives.org. Information on energy-efficient products can be found at energystar.gov. PG&E has made every effort to describe the tax credits accurately; however, PG&E cannot provide specific tax advice and recommends that you contact a tax professional with specific questions.
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