Consulting-Specifying Engineer - October 2008 - (Page 96)

Green Space Tax incentives pass, now up to private sector BY KYLE PITSOR, National Electrical Manufacturers Assn., Rosslyn, Va. The 110th Congress passed legislation in ASHRAE 90.1-2001. Individual subsystems can its waning days that contained critical energy receive the benefit, and partial deductions also tax provisions to assist investment in energyare permitted. efficient technologies in commercial buildInitially the provision was available for only two ings. Specifically, the Congressional Emergency years. In 2007 Congress extended it for an addiEconomic Stabilization Act of 2008, HR 1424, tional year. It was set to expire on Dec. 31, 2008, extended the tax deduction for energy-efficient but with the passage of the Emergency Economic technologies in commercial buildings, which was Stabilization Act, the benefits of the provision are first enacted as part of the Energy Policy Act of now extended through Dec. 31, 2013. 2005. Why is this important to readers of ConThe National Electrical Manufacturers Assn. sulting-Specifying Engineer? (NEMA) lobbied for this provision in 2005, and Buildings annually consume nearly 900 bil- sought a minimum period of five years for the lion kWh of electricity at a cost exceeding incentive, given the time needed to develop $115 billion each year. The electricity used by awareness of the tax provision and the time and in buildings account for nearly 70% of it takes to design and construct buildings, as the electricity used well as planning in the United States This incentive—the Commercial and executing renannually, and the Building Tax Deduction—establishes a ovations on older carbon dioxide emis- tax deduction for certain investments buildings. Use of sions associated with in energy-efficient interior lighting, HVAC the provision is now this energy usage is and hot water, and building envelope. gaining traction. It approximately 39% has taken several of total U.S. emissions each year. These high years for the industry to understand the opporenergy use and emission rates result from the tunities afforded by the Commercial Building large percentage (more than 75%) of comTax Deduction and for the IRS to issue regulamercial, industrial, and institutional buildings tions to use the provision. that were constructed before the introduction With the provision in place through 2013, the of the many groundbreaking energy-efficient challenge is up to the contracting, design, distechnologies now widely available. tribution, building owner, manufacturing, and For these key reasons, Congress included a construction industries to fully take advantage provision in the Energy Policy Act of 2005 that of this important incentive to install energyprovided a performance-based tax incentive for efficient lighting, heating, cooling and ventilabuilding owners to improve the energy effi- tion, and hot water technologies. ciency in buildings. This incentive—the ComSo, is the private sector up to the challenge mercial Building Tax Deduction—establishes a to take advantage of this tax incentive as part tax deduction for certain investments in energy- of national effort to increase the efficiency of efficient interior lighting, HVAC and hot water, our buildings, both renovation and new conand building envelope. The maximum deducstruction, with positive results of lower opertion is $1.80/sq ft for qualified improvements ating costs, reduction of greenhouse gas emisdesigned to reduce annual energy costs by 50% sions from building energy consumption, and or more when compared to a reference build- improvement in the quality of our built environing that meets the minimum requirements of ment? Time will tell. Pitsor is vice president, government relations at the National Electrical Manufacturers Assn. (NEMA). He directs the association’s government issue analysis, communication, and advocacy programs at the federal, state, and international levels. NEMA is the largest U.S. trade association representing manufacturers of products used in the generation, transmission, distribution, control, and end-use of electricity. NEMA’s members serve a domestic market of $100 billion and represent about 350,000 jobs. 96 Consulting-Specifying Engineer • OCTOBER 2008

Table of Contents Feed for the Digital Edition of Consulting-Specifying Engineer - October 2008

Consulting-Specifying Engineer - October 2008 Contents Viewpoint Letters News M/E Roundtable Cities Under One Roof Eight Design Tips for Integration Is 'Green' Really New? Down the Drain Product of the Year Awards Codes & Standards Case Study New Products Equipment Lifecycles Advertiser Index Green Space

Consulting-Specifying Engineer - October 2008

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