Tax Projects

Energy Policy Act of 2005

Heapy Engineering provides the required engineering services and uses software in compliance with IRS Notice 2006-52 to obtain maximum tax deductions established by the federal Energy Policy Act of 2005 (EPAct).

The federal Energy Policy Act of 2005 established a tax deduction for energy-efficient commercial buildings applicable to qualifying systems and buildings placed in service from January 1, 2006, through December 31, 2007. This deduction was subsequently extended through 2008, and then again through 2013 by Section 303 of the federal Energy Improvement and Extension Act of 2008 (H.R. 1424, Division B), enacted in October 2008. 
 
A tax deduction up to $1.80 per square foot is available to owners of new or existing buildings who install the following building subsystems:
    1. Interior lighting system; 
    2. Heating, cooling, ventilation, and hot water systems; and
    3. Building envelope.

Each subsystem is eligible for a $0.60 per square foot federal tax deduction if the total subsystem energy consumption meets energy savings targets when compared to similar buildings that meet minimum requirements set by ASHRAE Standard 90.1-2001. The subsystem targets are 20% interior lighting, 20% HVAC & hot water, and 10% building envelope.

©2017 Heapy Engineering site map