Important Notice:

Tax Credit 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 deductions are available for buildings or systems placed in service from January 1, 2006, through December 31, 2007.

Tax Credits for Homeowners (see table below):

Taxpayers can claim tax credits totaling $500 in 2006 and 2007 for money spent on existing homes to upgrade heating systems, insulation, windows, doors and thermostats, caulk leaks, install pigmented metal roofs and otherwise cut energy waste.

Write-offs for replacement windows are capped at $200, however, while the credit for high-efficiency central air-conditioning, heat pumps and water heaters is capped at $300.

C.L.I. will be able to perform energy analysis (certification) for the upcoming 2006 Tax Credits. The analysis will be able to be rated after January 1, 2006. If you are considering updates to your home for tax credits, please contact our office for further information or to arrange to have an analysis performed. The tax credits are complicated and may require the advice of your tax consultant.

Tax Deductions Must Be Certified

Energy Efficient Home Credit IRC Sec. 45L and List of Eligible Software Programs for Certification

For a homebuilder to qualify for the New Energy Efficient Home Credit under IRC Sec. 45L, they must receive a certification that the dwelling unit has met the energy savings requirements of Sec. 45L. An eligible certifier must use an approved Software Program to calculate the dwelling unit’s energy consumption for purposes of Sec. 45L.  Sec. 45L provides a $2,000 credit for a traditional free-standing home and either a $1,000 or $2,000 credit for a manufactured home depending on the level of energy savings achieved.

IRS Notice 2006-27 (Section 5) and Notice 2006-28 (Section 6) provide for the Service to create and maintain a list of software programs that have been accepted by the Service for use in computing energy consumption for the purpose of certifications under Sec. 45L.  An accepted software program will appear on the above list when the software developer submits the following information to both the IRS and RESNET.

1. The name, address, and telephone number of the software developer;
2. The name or other identifier of the program as it will appear on the list;
3. The test results, test runs and the software program with which the test was conducted;
4. A declaration by the developer of the software program, made under penalties of perjury, that the software program has satisfied all tests required to conform to the software accreditation process prescribed in RESNET Publication No. 05-001 (Nov. 17, 2005).