As a broad-based coalition of business, trade, design, construction, environmental, and energy efficiency groups and organizations, we write to you in support of enlarging the Energy Efficient Commercial Building Tax Deduction from $1.80 per square foot to $3.00 per square foot in order to
help stimulate immediate job creation.

You can read the full letter to Congress and the signers here.

To give you some background, the Energy Policy Act of 2005 enacted Section 179D of the US Tax Code, which allows for a tax deduction up to $1.80 per square foot to a taxpayer for the cost of energy efficient commercial building property that the taxpayer places in service after December 31, 2005, where such improvements achieve a 50% or greater reduction in the energy and power costs as compared against the ASHRAE 90.1 – 2001 benchmark. The Emergency Economic Stabilization Act of 2008 (HR-1424), which was signed into law in 2008, extends the benefits of the Energy Policy Act of 2005 through December 31, 2013.

In the case of an energy efficient commercial building property which does not qualify for the entire $1.80 per square foot deduction as a result of not meeting the 50% or more reduction in energy and power costs standard, the law provides for partial tax deductions for partially qualifying property related to (a) building envelope up to $0.60 per square foot, (b) heating, cooling, ventilation, and hot water up to $0.60 per square foot, and (c) interior lighting from $0.30 up to $0.60 per square foot.

So how much is it worth to you? Here is a quick example of how the math works:

100,000 sq feet
x $1.80 per sq foot (you can qualify for .30 up to 1.80 as noted above)

= $180,000 TAX DEDUCTION

So what does that mean to your business?

Just multiply the deduction amount times your tax rate, usually around 35%.

$180,000 TAX DEDUCTION
x 35% Tax rate

= $63,000 (Cash Benefit of deduction)

You owe the US government $63,000 less than you did without the tax deduction. That is cash in your coffers.

Make sense?