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Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
Tax Advantages of an Energy Efficiency Audit
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Tax Advantages of an Energy Efficiency Audit

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http://www.capitalreviewgroup.com A discussion on the tax advantages of an energy efficiency audit for your commerical building.

http://www.capitalreviewgroup.com A discussion on the tax advantages of an energy efficiency audit for your commerical building.

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  • Most of the opinions on: Mayor Mary Manross - Energy Efficiency Award do make sense and are thought provoking: especially when you write about LEED building energy efficiency. How did you reach this opinion as, up to this Wednesday, I thought the complete opposite?
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  • 1. ENERGY TAX ADVANTAGES INCENTIVES REBATES
  • 2. INCENTIVES: CREDITS – DEDUCTIONS - REBATES
    • INCENTIVE: Any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to alternatives.
    • REBATE: An amount paid by way of reduction, return, or refund on what has already been paid or contributed.
    • CREDIT (TAXATION): A reduction of taxes – dollar for dollar.
    • DEDUCTION: Reduces taxes by the percentage fixed for the taxpayer's income bracket
  • 3. ARIZONA INCENTIVES
    • Combination of :
        • Incentives
        • Credits
        • Deductions
        • … .participates in Federal Programs
  • 4. ARIZONA INCENTIVES
    • Corporate Tax Credit Non-Residential Solar & Wind Tax Credit
    •    Green Building Incentive Chandler - Fee reimbursement for LEED Cert
    • Scottsdale – Expedited plan review Buckeye – Expedited plan review, free construction H20 passes (Aqua Ctr) GR CO Tucson – Solar credit $1000
    •     Personal Deduction Energy Efficient Residences Qualifying Wood Stove Deduction
    •    Personal Tax Credit Non residential Solar & Wind Tax Credits Residential Solar & Wind Energy Systems
    •     Property Tax Assessment Property Tax Assessment for Renewable Energy Property
    •    Property Tax Exemption Solar Energy Property Tax Exemption
    •    Sales Tax Exemption Solar & Wind Equipment Sales Tax Exemption
  • 5. ARIZONA INCENTIVES
    • Utility Loan Program APS - GEOSmart Financing Program Sulphur Springs Valley EC - Member Loan Program Sulphur Springs Valley EC - SunWatts Loan Program
    • Utility Rebate Program APS - Energy Efficiency Solutions for Business APS - Energy Efficient AC Rebate Program APS - Renewable Incentive Program SRP - EarthWise Solar Energy SRP - PowerWise Business Solutions Energy Efficiency Rebate Program Sulphur Springs Valley EC - Residential Energy Efficiency Rebate Sulphur Springs Valley EC - SunWatts Rebate Program TEP - Commerical Energy Efficiency Rebate Program TEP - Renewable Energy Credit Purchase Program TEP - Residential Energy Efficiency Rebate Program Trico Electric Cooperative - SunWatts Incentive Program UES - Commercial Energy Efficiency Rebate Program UES - Energy Smart Homes Program
  • 6. FEDERAL INCENTIVES: CREDITS OR DEDUCTIONS
    • - Energy Efficient Commercial Buildings Tax Deduction - Energy Efficient New Homes Tax Credit for Home Builders - Modified Accelerated Cost Recovery System (MACRS) + Bonus Business Energy Investment Tax Credit (ITC) - Qualified Energy Conservation Bonds Qualifying Advanced Energy Project Investment Tax Credit Renewable Electricity Production Tax Credit (PTC) Renewable Energy Production Incentive (REPI) - Tribal Energy Program Grant Residential Energy Conservation Subsidy Exclusion (Corp) Residential Energy Conservation Subsidy Exclusion (personal) Residential Energy Efficiency Tax Credit - US DOE – Loan Guarantee Program Residential Renewable Energy Tax Credit - Clean Renewable Energy Bonds (CREBS) Energy Efficient Appliance Tax Credit for Manufacturers - Energy Efficient Mortgages Federal Appliance Standards - US Dept of Treasury – Renewable Energy Grants US Federal Government – Green Power Purchasing Goals USDA – Rural Energy for America Program Grants (REAP) USDA – Rural Energy for America Program Loan Guarantees (REAP)
    • Energy Goals and Standards for Federal Buildings Energy Reduction Goals for Federal Agencies
    • Interconnection Standards for Small Generators
  • 7. FEDERAL OPPORTUNITIES
    • Energy Efficient Commercial Buildings Tax Deduction (for taxpayer and primary designer)
    • Energy Efficient New Homes Tax Credit for Home Builders (both site built and manufactured)
    • Renewable Credits (ITC)
    • Modified Accelerated Cost Recovery System (MACRS) + Bonus
  • 8. FEDERAL CREDITS: ITC
    • Solar: Water Heater
          • Space Heater
          • Thermal Electric
          • Thermal Process Heat
          • Solar Hybrid Lighting
          • Photovoltaics (PV)
          • Geothermal: Electric
          • Heat Pumps
          • Direct Use
          • Fuel Cells
          • Wind
          • Biomass
          • CHP/Cogeneration
          • Microturbines
  • 9. FEDERAL CREDITS: ITC Commercial, Industrial, Utilities
    • SOLAR: 30% of costs – NO CAP
    • FUEL CELLS: 30% of costs – NO CAP ($1500/.5KWh)
    • SMALL WIND TURBINES: 30% of costs – NO CAP (<100kW)
    • GEOTHERMAL SYSTEMS: 10% of costs NO CAP
    • MICROTURBINES: 10% OF COSTS – $200/Kw of capacity
    • CHP: 10% of costs –
  • 10. COMMERCIAL BUILDINGS EPACT 2005TAX DEDUCTION Section 179D
  • 11. COMMERCIAL BUILDINGS Section 179D
    • Deduction = up to $1.80/sq ft for reduction of total energy use by 50% (whole building)
    • Partial Deduction of $.60/sq ft for 16 2/3 energy reduction for any one of the three systems
    • Energy modeling required
    • New construction, retrofits
  • 12. COMMERCIAL BUILDINGS Section 179D
    • INTERIM RULE: LIGHTING
    • Watts per square foot
    • Space by space approach
    • BI-LEVEL SWITCHING MANDATORY
    • EXCLUSIONS:
      • Lobbies, guest rooms, rest rooms, storerooms
  • 13. COMMERCIAL BUILDINGS Section 179D INTERIM LIGHTING RULE From $.030/sq ft for exceeding ASHRAE 90.1 2001 by 25% From $.060/sq ft for exceeding ASHRAE 90.1 2001 by 40% Exception: Warehouses MUST exceed by 50% ASHRAE 90.1 2001
  • 14. COMMERCIAL BUILDINGS Section 179D
    • PUBLIC – GOVERNMENT BUILDINGS:
    • “ Primary Designer” may qualify for the deduction benefits (one who creates the technical specifications)
  • 15. COMMERCIAL BUILDINGS Section 179D
    • CERTIFICATION FOR SECTION 179D
    • Third – party certification
    • Party “not-related” to taxpayer
    • Approved software (by IRS) required
    • Deduction may be taken for projects from 1.1.06 through 12.31.13
  • 16. HOME BUILDER CREDIT
    • $1000 to $2000
    • SITE BUILT AND MANUFACTURED HOMES
    • Homes completed post August 8, 2005 – purchased after December 31, 2005 and prior to
    • January 1, 2009
  • 17. HOME BUILDER CREDIT
    • $1,000 to $2,000 CREDIT
    • Qualification:
      • Built in the US
      • Construction “substantially” completed post 8.8.2005
      • Meets statutory energy savings requirements
      • Acquired from the eligible contractor after 12.31.2005 and prior to 1.1.2008 – for use as a residence
  • 18. HOME BUILDER CREDIT
    • SITE BUILT = 50% energy reduction $2,000 (International Energy Conservation Code Standard )
    • MANUFACTURED HOME = $1,000 - $2,000
        • 30% to 50% energy reduction
        • Must receive certification
  • 19. DEPRECIATION Modified Accelerated Cost Recovery System (MACRS) + Bonus
    • How to get the Feds to underwrite an energy efficiency project
    • Modify asset classification to “catch up” missed depreciation
    • Bonus of 50% on “NEW” assets
  • 20. DEPRECIATION
    • Depreciation is about “useful life”
    • IRS has it’s own rules about “useful life”
    • Commercial property = 39 years
    • Commercial residential – 27.5 years
    • “ Real Property” vs. “Tangible Personal Property”
    • 39 year assets (27.5)
    • 15 year assets
    • 5 year assets
  • 21. RECLASSIFICATION
  • 22. IRS OPTIONS
    • “ Catch up” missed “Catch up” missed depreciation:
          • Existing/owned property (since 1992)
    • Start with correct depreciation:
          • New construction or acquisition
          • Remodels/retrofits/additions
  • 23. “ BONUS” DEPRECIATION
    • Assets, 2008 & 2009
    • 50% “Bonus” on “NEW” assets
    • Combine Section 179 with “Bonus” (expense + bonus)
  • 24. INFORMATION
    • Difficulty in keeping up with new federal and state opportunities
    • Approximately 60 new initiatives monthly
  • 25. ESSENTIAL WEB SITES
      • www.energy.gov - Department of Energy
      • www.energystar.gov – Variety of discussion residential & comm
      • www.epa.gov/greenbuilding - Discussions of sustainability
      • www.irs.gov – Tax info: Notice 2006-52/N2008-40/IRB2008-14
      • www.dsireusa.org – All states and federal incentives
      • www.ashrae.org – All Standards
      • www.aceee.org – American Council for an Energy Efficient Economy
      • www.energytaxincentives.org – Tax Incentives Assist Project (TIAP)
      • www.usgbc.org – Leed & sustainability
      • www.greenbuildings.com – Principally residential
  • 26. THANK YOU! Marky Moore, LEED AP President CAPITAL REVIEW GROUP 602 741.7776 – Direct [email_address]

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