National Fuel – New York
National Fuel – Pennsylvania
The Energy Policy Act of 2005 created a new round of tax incentives for both the mobile (vehicle) and stationary (building) energy user markets. Although passed in 2005, it was well into 2006 before many of the ‘Rules’ (tax guidance) came out for non-residential users and certain things are still unclear as I write this. Use the web links on this page to obtain details and keep informed of clarifications as they become available.
There are 18 different ‘Titles’ in HR 6-2005. Title XIII Energy Policy Tax Incentives is the part that is applicable to buildings and end-users. Qualifying measures are eligible for up to $1.80 per square foot of building when placed into service after December 31, 2005 and before December 31, 2010. This is a DEDUCTION of tax liability, which is not as valuable as the other type of incentive often offered, the Tax Credit. The Bill includes both Credits and Deductions for different categories.
Eligible measures include interior lighting, heating, cooling, ventilation, hot water and building envelope measures that exceed building code requirements.
The following information is excerpted from http://www.energy.gov/taxbreaks.htm in August 2006:
About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Beginning in tax year 2006, consumers will be able to itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.
Manufacturing Tax Credits
The American Reinvestment and Recovery Act of 2009 (ARRA) authorizes the Department of Treasury to award $2.3 billion in tax credits for qualified investments in advanced energy projects, to support new, expanded, or re-equipped domestic manufacturing facilities. The Advanced Energy Manufacturing Tax Credit (MTC) was authorized in Section 1302 of ARRA and requires the Secretary of Treasury to work in consultation with the Secretary of Energy. The MTC is also referred to as Section 48C of the Internal Revenue Code. The goal of the MTC is to grow the domestic manufacturing industry for clean energy, thereby supporting the larger goals of ARRA to stimulate economic growth, create jobs, and reduce greenhouse gas emissions. In short, the MTC will help secure American leadership in the clean energy sector.
The MTCprovides a 30% credit for investments in new, expanded, or re-equipped advanced energy manufacturing projects. Up to $2.3 billion in MTCs will be allocated for advanced energy projects, which will support total capital investments of almost $7.7 billion in new renewable and advanced energy manufacturing projects. more info here …
Business Tax Credits
Businesses are eligible for tax credits for buying hybrid vehicles, for building energy- efficient buildings, and for improving the energy efficiency of commercial buildings (as outlined in the Energy Policy Act of 2005).
Energy-efficient Commercial building deduction.
This provision allows a tax deduction for energy-efficient commercial buildings that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard. The deduction would equal the cost of energy-efficient property installed during construction, with a maximum deduction of $1.80 per square foot of the building. Additionally, a partial deduction of 60 cents per square foot would be provided for building subsystems.
IRS Home Page www.irs.gov
DOE Primary site on financial opportunities: http://www.eere.energy.gov/buildings/info/tax_incentives.html
Note that these specific URLs often change; therefore, these links may only get you ‘close’ to this information and an additional search may be required once you reach the web site:
TIAP: http://www.energytaxincentives.org (All classifications)
Commercial Building Tax Deduction Coalition: http://www.efficientbuildings.org
There are also links from some of the above sites to several other sites that include renewable energy, mobile end-use, on-site power production and other Titles/elements of the 2005 Bill.