Green business, green careers and job training
Solutions that build smart communities with green careers and sustainable businesses!

Save on Career Education through Lorman Education

Our readers are offered a discount on Lorman seminars and courses. Check out their business, management and legal offers at this link to qualify for our discounts. They also offer green business training opportunities. Please visit for a complete listing of courses. Register online or call Lorman at 866-352-9539.
Home > By DEPARTMENTS > Buildings, Real Estate and Facilities > Green Building Practices for Sustainable Facilities > Energy Efficiency and Conservation for Facilities Management

Federal Green Building Tax Deduction Revived in HR 1424, Oct. 3, 2008

Congress Passed the Financial Bailout Bill that Includes Renewable Energy Provisions -- and the President Signs Green Building Tax Deduction Into Law

Find green business solutions

H.R. 1424 extends the Energy Efficient Commercial Building Tax Deduction for 2009

On October 3, 2008, President Bush signed into law H.R. 1424 and extended the Energy Efficient Commercial Building Tax Deduction as part of the Emergency Economic Stabilization Act of 2008.

The tax deduction is not a tax credit (an amount directly subtracted from the tax owed), but a deduction – an amount subtracted from gross taxable income. Tax deductions result in benefits to the taxpayer; thus this newly created program can be used as an incentive to assist in choosing energy efficient building systems.

Commercial Building Tax Deduction:

The Energy Policy Act of 2005 included a new tax incentive to improve the energy efficiency of commercial buildings.

The "Commercial Building Tax Deduction" establishes a tax deduction of up to $1.80 per square foot is available to owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001.

Only buildings covered by the scope of ASHRAE Standard 90.1-2001 are eligible. Partial deductions of $.60 per square foot can be taken for improvements to one of three building systems—the building envelope, lighting, or heating and cooling system—that reduces total heating, cooling, ventilation, water heating and interior lighting energy use by 16 2/3% (16 2/3% is the 50% goal for the three systems spread equally over the three systems).

Tax Deduction Amount:

The deduction is limited to an amount equal to $1.80 per square foot of the property for which such expenditures are made.

Qualifying Buildings:

  • The building must be located in the United States.
  • Installed on or in any building located in the United States that is within the scope of Standard 90.1-2001, Energy Standard for Buildings Except Low-Rise Residential Buildings, of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America;
  • Installed as part of (i) the interior lighting systems, (ii) the heating, cooling, ventilation, and hot water systems, or (iii) the building envelope;
  • Certified as being installed as part of a plan designed to reduce the total annual energy and power costs of interior lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent or more when compared to a reference building, which meets the minimum requirements of Standard 90.1-2001 (as in effect on April 2, 2003).


IRS Notice 2006-52 requires inspectors to be engineers or contractors licensed in the jurisdictions where the building is sited. Inspections must meet guidelines of the National Renewable Engineering Laboratory.

Government-Owned Buildings:

For energy-efficient commercial building property expenditures made by a public entity, such as public schools, the IRS issued guidance on March 12, 2008 that allows the deduction to be allocated to the person primarily responsible for designing the property in lieu of the public entity (e.g., an architect, engineer, contractor, environmental consultant or energy services provider).

Effective Date:

The provision is effective for property placed in service after December 31, 2005, and prior to December 31, 2013.

To learn more about the Energy Efficient Commercial Building Tax Deduction or to schedule a no-cost, please visit:

About SourceCorp:
Nationally recognized for its service excellence, SourceCorp Professional Services is an industry leader for LIFO Accounting, Green Building Tax Deductions and specialized tax services. For more than 25 years, SourceCorp has worked closely with CPA firms, manufacturers, wholesalers, building owners, architects, and auto dealerships to realize their vision to increase cash flow, reduce taxes, and build lasting value, while striving to maintain the highest level of customer service, communication and overall satisfaction. SourceCorp is owned by Apollo Management, Inc., a private equity firm based in New York. For additional information, please visit our web site at

Edited by Carolyn Allen, owner/editor of California Green Solutions
Green Solution Providers
Green companies directory
your green solutions - business, nonprofit, government program.
It's free.
| green building | renewable energy |

Share in Social Media

Sign Up For News & Information
Subscribe to our free solutions newsletter
"Ten+ Tips for Greening Your Office"

Read prior issues: California GreenLines

Search For Green Solutions

Custom Search
Green Career Center
Green Job Wizard
Career Certifications Directory

green job training certifications
Green Biz Center
Solutions For Green
Directory of Green Companies

Solutions for Alternative Energy

rose in natural systems
Green Living Center
Solutions for Green: Consumers

Solutions for Remodeling

Backyard Nature Center


"Knowing is not enough; we must apply. Willing is not enough; we must do." Goethe

Related Articles

Johnson Controls’ fifth annual Energy Efficiency Indicator survey

Algae Industry Update from Scripps

Energy Generation Uses
Natural Resources | Water

Related Green Resources

Marcom Tips
Interactive & Video Tips

Career Resources

We encourage lifelong learning to support sustainable communities and provide these select resources to help you pursue green and sustainable self-development:

Lorman Business Training Directory of On-line Business and Compliance Classes

Green Job Wizard Job and Career Certifications Directory

Job & Career Resources

Sales & Marketing
Human Resources

Green Economy

Business Sectors
Natural Resources

Solutions For Green

About Us ~ Privacy Policy
Contact Us ~ Home

Text Link Ads

AD: Place your link here


We help you green your career, workplace and community by connecting you to quality green, sustainable and high performance resources. California Green Solutions focuses attention on effective solutions that sustain our natural systems. You can support our editorial work by supporting our advertisers and spreading the word about best practices and green solutions.
California Green Solutions is a publication of Carolyn Allen ~ Copyright ©2006-2030 Carolyn Allen

B2B | Job Certifications | Alternative Energy | Events | Green Directory | LED Lights | Remodeling |
CONSUMERS | Backyard Nature | Senior Health | MultiMedia Marketing | Marketing | Networking Events | Japan |