EPact Reaches First Anniversary
July 2006 - Facilities Management
With the upcoming first anniversary of the passage of the Energy Policy Act of 2005 (EPAct), facility executives will find it easier to earn tax deductions for upgrades that improve a building’s energy efficiency, thanks to a notice of rulemaking issued by the IRS.
The notice issues guidance on how interior lighting, HVAC, hot water and building envelope system upgrades can be deducted. The notice can be found online at http://, www.irs.gov/pub/irs-drop/n-06-52.pdf.
According to the Department of Energy, since EPAct was signed into law more than a year ago, 27 new ethanol plants have broken ground and more than 400 E-85 pumps have been installed that offer home-grown fuel.
There are also 25 new nuclear reactors under consideration, and five new or expanded liquefied natural gas terminals have been approved for construction. There has also been an increase in the use of both wind and solar energy, DOE says.
DOE is also in the process of finalizing three additional important requirements of EPAct. The Energy Department will issue guidelines for loan guarantees that will facilitate private efforts, bringing the most promising clean energy technologies to market. And the Department will outline a new risk insurance program to guard against bureaucratic hurdles in getting new nuclear power plants up and running. DOE will also release a report identifying the most critical areas of electricity transmission congestion.