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Commercial Buildings Deduction

• What is the Energy Efficient Commercial Buildings Deduction?
• How can the maximum cap of $1.80/sq.ft. be earned for the tax deduction?
• How do I get a copy of the law to read the section describing the Commercial Buildings Deduction for myself?
• This website focuses almost entirely on the lighting aspects of the Commercial Buildings Deduction. Is there a similar site or resource providing guidance on all aspects, including HVAC/hot water and building envelope?

Commercial Buildings Tax Deduction’s Lighting Rules

• What is the difference between a tax deduction and a tax credit?
• When does the Commercial Buildings Tax Deduction expire?
• What does “placed in service” mean?
• What if my project cost is higher than the cap of $0.60/sq.ft.? How is the remain cost treated tax-wise?
• What if a commercial building tenant performs a retrofit that would meet the energy savings. Would they get the CBTD?
• How should a taxpayer claim the Section 179D deduction related to energy efficient commercial buildings?
• What types of buildings qualify?
• Can parking lot lighting apply for the CBTD?
• Can portions of buildings be retrofitted and still qualify for the CBTD—for example, the common area versus tenant spaces, or a manufacturing area in the same building as a warehousing area?
• If a customer has applied for and received the CBTD for the installation and upgrade of their interior lighting system, but did not maximize the CBTD (i.e., the project cost was less than $0.60/sq. ft.), can the customer—if they installed control technology (motion/ambient sensors), which would further reduce the building's energy consumption—claim additional EPAct 2005 funding?
• Does a lighting retrofit need to be done as a one-time project to qualify for the CBTD, or can I retrofit a little each month by the end of the year?

Commercial Buildings Deduction's Coverage

• How should a taxpayer claim the section 179D deduction relating to energy efficient commercial buildings?
• What is the timeframe for the Commercial Buildings Deduction?
• What types of buildings qualify?
• Do public buildings qualify for this tax deduction?
• Do churches qualify for this tax deduction?
• Can projects in foreign countries for buildings owned by U.S. businesses qualify for the Commercial Buildings Deduction?
• What types of lighting expenditures qualify?
• Does this mean lighting cost components such as installation labor or lamp recycling can be deducted on the owner’s taxes?
• Do lighting retrofits qualify for the Commercial Buildings Deduction, or must it be a new construction or renovation project?
• Can portions of buildings be retrofitted and still qualify for a deduction—for example, the common area versus tenant spaces, or a portion of the common area?

Lighting and Controls

• We’ve had several conversations around here about what constitutes a lighting retrofit for the purposes of the CBTD. One argument is that changing magnetic ballasts and T12 lamps to electronic ballasts and T8 lamps is a retrofit and should qualify for EPAct 2005. The other side says no, simply changing lamps and ballasts is a maintenance procedure and they are not “permanently installed.” Which is true?
• What exactly are the minimum recommended calculated light levels as established in the Ninth Edition of the IES Lighting Handbook?
• Are you aware of any clear definition of “bi-level switching”?
• Are exit signs included and if so, can they be retrofits versus new signs?
• Are screw-in compact fluorescent lamps included and if so, are there any requirements for permanence?
• Manufacturers participating in the ENERGY STAR program have come up with a new base and socket for CFLs called the GU24 socket. Would CFLs be eligible for the CBTD if this socket is used or a permanent socket adapter is used?
• Can task lighting be included in a retrofit that contributes to earning the CBTD?
• Can lighting controls such as dimming and occupancy sensors contribute to the lighting power density savings needed to qualify for the CBTD under the Interim Lighting Rule?

ASHRAE/IESNA 90.1

• Is it the case that per ASHRAE/IESNA 90.1-2001 the maximum possible wattage for the fixture will be applied?
• ASHRAE/IESNA 90.1-2001 allows tradeoffs between building types and space types depending on method, and it also allows additional interior lighting power allowances if using the Space-by-Space Method. Are these still the case when applying ASHRAE/IESNA 90.1-2001 to the Commercial Building Tax Deduction?
• If a building is used as both a warehouse and manufacturing facility, ASHRAE/IESNA 90.1-2001 appears to allow the building area method to be used separately for the warehouse portion and the manufacturing facility portion. Is it then the case that the tax deduction would be calculated separately for both areas of the building if the building area method is used—50% savings and $0.60/sq.ft. for the warehouse, and 25-40% savings and $0.30-$0.60/sq.ft. for the manufacturing facility?
• I have heard that ASHRAE/IESNA 90.1-2001 was amended to adopt the lighting power densities in ASHRAE/IESNA 90.1-2004, which are stricter. How is this addressed by the CBTD?
• If a building were designed to a newer building standard, wouldn’t it already satisfy the conditions for the tax deduction?