Re: Energy Policy Act of 2005 Energy Tax Deduction Opportunities

The Energy Policy Act (EPAct) of 2005 provides a tax deduction, limited to an amount up to $1.80/sq.ft for exceeding
ASHRAE/IESNA 90.1-2001 by up to 50%, to the property for which the energy efficient expenditures are made as part of
new construction or renovations.
The available tax benefits allowed under the Energy Policy Act of 2005 (EPAct) associated with energy efficient commercial
building property in compliance with the requirements of IRS tax code 179D and IRS Notices 2006-52 and 2008-40.
Section 179D(a) allows a deduction to a taxpayer for part or all of the cost of energy efficient commercial building property
that the taxpayer places in service after December 31, 2005, and before January 1, 2013. The energy efficient property may
include the buildings interior lighting systems, heating, cooling, ventilation, and hot water systems, and building envelope to
obtain a certification that the property satisfies the energy efficiency requirements of 179D.

Deduction is limited to the capitalized energy efficiency investment for the year in which the energy efficient
investment is made
The provision is effective for property placed in service after December 31, 2005 and through December 31, 2013.
Where the building cannot achieve a whole building energy reduction of 50% or more then partially qualifying
options exist to take advantage of components that qualify under the IRS guidance.
Alternate system-specific deductions are available for three building sub-systems each up to $0.60/sq.ft: interior
lighting; HVAC; building envelope.
LEED projects are ideal for this incentive but non-LEED energy efficient buildings may also qualify.

A preliminary review and pricing exercise is required to identify the potential and the cost to provide third party certification
of the qualifying property. The following information is necessary to perform the complimentary analysis:

Architectural Drawings: drawing sheet index, floor plans, roof plans, elevations, wall sections, roof sections,
elevations, reflected ceiling plans, and site plan on disk in .PDF or [.DWG] format. If DWG format is provided then
documents shall be bound with xrefs inserted.
MEP Drawings: HVAC, plumbing and lighting drawings, and schedules
Construction specifications- electronic versions of envelope (i.e. Division 7 and 8) and MEP Systems.
Approved shop drawings representing energy efficient property- electronic [May be submitted after drawings and
specifications in order to start the review process].
Envelope Compliance Form: Review and confirmation that building envelope meets minimum mandatory measures.

Henderson Engineers is available to provide the preliminary evaluation, energy analysis and certification reports for
potentially qualifying projects. As a valued customer we would like to assist you with this effort. Once a preliminary review
is returned we will evaluate and make a recommendation for proceeding with a full energy analysis certification.
We have found that this is a valuable tool for enhancing project profits and providing added value to our clients. We would
like the opportunity to show you how this can help you both on past projects and future projects yet to be completed.
Helpful Links:
http://www.efficientbuildings.org/index.html
http://www.efficientbuildings.org/related_rules.html
http://energytaxincentives.org/