Overview of EPACT 2005

Section 1331 of the Energy Policy Act of 2005 provides for and allows a 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) standard.

The deduction equal the cost of energy efficient property installed during construction, with maximum deduction of $1.80 per square foot of bhe building. Additionally, a partial deduction of $0.60 per square foot is provided for sub-systems.