Federal Tax Deductions for Energy Efficient Buildings
The Energy Policy Act of 2005 established a tax deduction for energy efficient commercial buildings with qualifying roofing systems placed in service the following year. This Act has expired, been reinstated and then extended several times, and currently in effect until December 31, 2016 with the enactment of the Consolidated Appropriations Act of 2015.
For projects placed in service after December 31, 2015, business taxpayers can receive a deduction equal to the cost of energy-efficient property installed during construction, up to $1.80 psf, for commercial buildings reducing annual energy consumption by 50 percent compared to minimum requirements set by ASHRAE Standard 90.1-2007. ASHRAE recognizes thermal insulation and reflective roofing as the two roofing technologies pertinent to this requirement. Visit the Commercial Building Tax Deduction Coalition for all the latest details on this provision and/or DSIRE’s page on the tax deduction. Both pages are updated as necessary.