Process and Operations

New energy tax incentive available in 2006


Jan 19, 2006

The Commercial Building Tax Deduction section of the Energy Policy Act of 2005, which became effective Jan. 1, 2006, provides a new deduction for expenses incurred for energy-efficient commercial building property. The Commercial Building Tax Deduction Coalition, created by the National Electrical Manufacturers Assn. (NEMA), has set up a website at to provide information and guidance on how the new tax incentive works.

In addition to educating the community about the commercial building tax deduction provision, the main objectives of the website are to promote the provision's proper implementation and use, and keep the community informed about the activities of the coalition.

" was developed to support the coalition's mission. The website acts as a resource for commercial building tax deduction information and serves as a reference to all parties involved, be it a coalition member or commercial building owner," says Kyle Pitsor, NEMA vice president of government relations. "The coalition hopes that the website is welcomed by the community and that it will eventually become a major vehicle for promoting energy-efficient technologies."

The Commercial Building Tax Deduction Coalition, with members including standards-developing organizations, manufacturers, building and trade associations, government officials, energy efficiency groups, and others, is working to ensure that the provision is implemented smoothly and to promote awareness and information about the benefits that all stakeholders derive from energy-efficient commercial buildings. The provision is effective for property placed in service from Jan, 1, 2006 through Dec. 31, 2007.