The commercial building deduction, enacted in EPACT, allows taxpayers to deduct the cost of energy-efficient property installed in commercial buildings. The amount deductible may be as much as $1.80 per square foot of building floor area for buildings that cut their energy use by half. Buildings that fall below that target can still earn a deduction of 60 cents per square foot if they at least cut their energy use by one sixth.
Before claiming the deduction, the taxpayer must obtain a certification that the required energy savings will be achieved, and the notice describes how to obtain that certification.
To support this effort, the Department of Energy has announced it will create and maintain a public list of software that must be used to calculate energy savings for purposes of providing the certification.
The full notice can be read on the IRS Web site
