Brownfield Grant Writing Tip #36 - Leveraging Through Energy Star Tax Credits

Southern Communities, particularly rural communities in rural States, may not have all the bells and whistles of tax credits, incentives, etc. that they can tout as their own when it comes to leveraging resources.  Why not just cite an existing federal Tax Deduction for Commercial Buildings as one of YOUR leveraging resources.  Here it is:

Tax Deductions for Commercial Buildings

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems “placed in service” from January 1, 2006 through December 31, 2013.

Take the ENERGY STAR Challenge to find the best opportunities for energy savings, set goals for improvement, and achieve superior energy efficiency.

• IRS Notice 2006-52 (6/2/2006) provides guidance on deduction for energy efficient commercial buildings.


• IRS Notice 2008-40 (4/7/2008) - Amplification of Notice 2006-52


• Qualified Software for Calculating Energy Savings


• Commercial Building Tax Deduction Coalition


• Brochure: Commercial Energy Efficiency Incentives (TIAP — May 2009, 2 pages

Good Luck!