Q. What is EPACT?

EPACT stands for - Energy Policy Act of 1992 (EPAct) was passed by Congress to reduce our nation's dependence on imported petroleum by requiring certain fleets to acquire alternative fuel vehicles, which are capable of operating on nonpetroleum fuels. The U.S. Department of Energy administers the regulations through the:

• Federal Fleet Requirements
• State and Alternative Fuel Provider Rule
• Private and Local Government Fleet Rule
• Alternative Fuel Designation Authority

Q. Is the commercial building tax incentive a tax deduction or tax credit?

A. It is an accelerated tax deductuin fir capital improvements to new or existing buildings. More specifically, this provision allows a company to write off a significant portion (up to $1.80 per square foot) of a capital investment in an energy efficient lighting, HVAC and building materials in the year it was installed. IRS Rules for writing off investments in long term capital assets varies, but can be as long as 39 years of capital improvements to building structures. The ability ti immediately deduct almost the full cost of such capital investment provides a significant financial incentive to a for-profit company.

Q. What is the maximum deduction available for a lighting system upgrade?

A. sixtu cents per square foot

Q. What is the maximum deduction available for the HVAC system upgrade?

A. Sixty cents per square foot

Q. What is the maximum deduction available for building envelope upgrade?

A. Sixty cents per square foot

Q. Can the above deductions be combined?

A. Yes, for a total deduction of $1.80 per square foot.

Q. Is it possible to apply for a tax deduction for only a portion of the building?

A. Yes. For example, if only a certain portion of the building has energy efficient lighting, EPACT can be done for that portion only. If the rest of the building is upgrated in the following year that upgrade can be claimed than.

Q. What is the effective date for taking advantage of this tax deduction?

A. The provision is effective for properties placed in service after December 31, 2005. For tax purposes, "placed in service" generally means the time at which the property is ready for it's intended use.

Q. How much money I can save in reality?

Your Project can receive a deduction up to $1.80 per square foot for the total project of each location upon verification just from EPACT. This program is for new store construction as well as re-models. The following are the tax deductions you can receive for a typical Dealership:

Typical Dealership 100,000 sq. ft. building x $1.80 deduction = $180,000.00

You may be qualifies for other deductions, credits or intensives depending on the location you are in and the type of construction you are owning or designing.

I am a Home Owner, Where do I Start?

If you would like to make your house green and receive my credit in the end of the year you should start by reading about Home improvement credits and list of qualifying home improvement equipment at energystar.gov first. It is a lot of ways to make your home green. If you choose to use install solar power you will get 2000$ credit back. Here is best according to public reviews "Home owners Solar Power and Wind Energy E-book"