In case you missed it, the IRS made a big adjustment to the Energy Policy Act — and there’s still time to benefit.
Since its inception seven years ago, the Energy Policy Act has been paying dividends for businesses that make energy-efficient upgrades that reduce heating, cooling, water consumption, and interior lighting costs.
And the IRS listed the changes to the act in IRS Notice 2012-22. Though interior lighting systems now require a 25% reduction in energy usage to qualify for a deduction (up from 20%), HVAC and building improvements requirements have gone down, or at least stayed the same:
- HVAC energy savings must be 15% or higher for the deduction, down from 20%, and
- “Building-envelope” (windows, roofs, etc.) savings remain at 10% or higher, which hasn’t changed, but it is still a reduction from the percentage permitted under Notice 2006-52, which was 16.6%.
If you’re wondering why building-envelope savings has remained steady, it’s most likely to benefit (or encourage) building owners that are taking on whole-facility construction or improvement projects.
But even if you’re not looking to give your building or facility a complete “green” makeover, it would behoove you and the execs to examine any planned upgrades that may be on the back burner.
Are you taking advantage of the Energy Policy Act? Why or why not? Let us know in the comments below.
