Get the EPACT 2005 Tax Deduction and Reduce Your Utility Bill Too

by | Dec 12, 2013 | Financial Services

Through the years, there has been an increasing emphasis on moving forward with improvements that boost a business and also reduce energy usage. If you’re interested in one that could be particularly lucrative for your business, it’s worth researching the EPACT 2005 Tax Deduction. Keep reading to find out more about the basics of this incentive, and why you should keep it in mind during remodeling efforts.

Establishment and Timeframe

Eligible businesses can deduct anywhere from 30 cents to $1.80 per square foot, depending on the amount of energy that’s saved through the type of technology utilized. This benefit came into effect on the first of the year in 2006, but has been extended a couple of times since then.

The most current edition will remain until the end of 2013. That means if you’ve been considering making an improvement to your business and want to do something that’ll save energy and be kind to the environment, now is a great time to move forward with plans.

Clarification of Some Benefits Under the EPACT 2005 Tax Deduction

If you own a new or existing building and make changes that cut the energy usage by 50 percent or more in comparison to a similar building that meets the minimum requirements set forth by ASHRAE Standard 90.1-2001, you could be eligible for the maximum deduction available. Some of the ways you could make alterations include installing better interior lights, heating, cooling, ventilation, or hot water systems.

However, it’s still possible to get a 60 cent reduction per square foot if you make smaller changes and it’s determined if more extensive systems were installed along with the changes you made, the 50 percent reduction described in the previous example could feasibly be reached.

Other Specifics

In both cases, the amount of energy cost savings must be calculated by software that’s been approved by the Internal Revenue Service. Additionally, although the EPACT 2005 Tax Deduction is aimed at business owners, tenants may also be eligible, provided they’re responsible for construction costs.

After deciding which kinds of improvements you’d like to make, take the next reasonable step and consult with a building company that’s well versed in how to help the EPACT 2005 Tax Deduction be maximally beneficial for your business. Then you can look forward to pleasing results. Browse us to know more.

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