Energy Improvement and Extension Act of 2008
On October 3, 2008, following weeks of contentious negotiations between the House and Senate, Congress approved, and the President signed into law the Energy Improvement and Extension Act of 2008 as part of (i.e. Division B) H.R. 1424, the Emergency Economic Stabilization Act of 2008 — a.k.a. the bailout bill.
Sec. 303 of the Energy Improvement and Extension Act of 2008 extends the Energy Efficient Commercial Buildings Tax Deduction from 2008 through 2013.
SEC. 303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION – Subsection (h) of section 179D is amended by striking `December 31, 2008′ and inserting `December 31, 2013′.
What is the Energy Efficient Commercial Buildings Tax Deduction?
- The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.
How does the Energy Efficient Commercial Buildings Tax Deduction apply to lighting upgrades?
- From January 1, 2006 until the Treasury Department issues final regulations defining savings targets for individual building systems, the Commercial Buildings Deduction’s Interim Rules for Lighting Systems are in effect. The Interim Rules offer an accelerated tax deduction that is the lesser of: The complete cost of installing energy-efficient interior lighting; or $0.30 to $0.60/sq.ft. proportional to lighting power density (watts per square foot) savings of 25% to 40% below ASHRAE the 90.1-2001 standard lighting power density, which varies by building type.
Click here for the full text of the Energy Improvement and Extension Act of 2008 as well as H.R. 1424. Table of contents provided below.
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EIA: Retail Prices
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