Tax Deduction Rewards Green Building Construction

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Commercial building owners and lessees may qualify for a new tax deduction for making their buildings energy-efficient. Those planning new building improvements or construction can ensure they earn an immediate deduction versus having to capitalize and depreciate the asset over 39 years.

The Energy Policy Act of 2005 added section 179D to the Internal Revenue Code. Section 179D permits a deduction for the costs of installing certain energy efficient building systems in commercial buildings. Section 179D 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, 2009. But taxpayers must satisfy certain tests to claim the deduction.

Energy Efficiency Tax Deductions:
You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings. The Energy Policy Act of 2005 includes a tax deduction for investments in "energy efficient commercial building property" designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings.

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Good policy.

I'd like to see government policies that encourage perfectly good old houses to be moved instead of demolished and dumped in a landfill. Maybe even take it a step further and adopt policies that encourage deconstruction and recycling whenever possible over demolition and dumping. Tulsa would benefit from a construction material/waste recycling program.