The commercial building deduction, enacted in the Energy Policy Act of 2005, allows taxpayers to deduct the cost of energy efficient property installed in commercial buildings. Buildings that achieve a 50 percent energy savings target can deduct up to $1.80 per square foot of building floor area. Buildings below the 50 percent threshold may still qualify for a deduction of up to 60 cents per square foot of floor space, if they meet a 16.67 percent energy savings target for HVAC equipment.
Trane's TRACE 700 software is one of the programs accepted by the IRS for energy savings certification.
According to Trane, the TRACE program is an analytic tool for building system designers. It enables them to optimize the building, system, and equipment designs on the basis of energy utilization and life-cycle costs. Using the program in the early stages of building planning allows the building owner and design team to receive the maximum benefit of a detailed analysis. TRACE can also be used for assessing the energy and economic impact of building renovation or system retrofit projects.
Publication date: 10/16/2006