Oct. 20, 2006: Trane Software Approved by IRS for Energy Saving Calculation
PISCATAWAY, N.J. - The U.S. Internal Revenue Service (IRS) recently announced that commercial property owners can potentially enjoy significant tax deductions by making their buildings more energy efficient, and in its Notice, also officially approved Trane's TRACE 700 software to certify energy savings.
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.