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 “energy–efficient” makeover and building upgrades, it would behoove you and the execs to examine any planned upgrades that may be on the back burner.
Source: www.cfodailynews.com; Rich Coleman; October 9, 2012.