The commercial building tax deduction, originally provided in the Energy Policy Act of 2005 and set to expire Dec. 31, 2007, was extended one year when lawmakers passed the Tax Relief and Health Care Act of 2006 (H.R. 6111).
For commercial buildings, the tax incentives provide a deduction of up to $1.80 per square foot for buildings designed to use 50 percent less energy than required by the model commercial building energy code, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) 90.1. Before the extension, the deduction applied to buildings placed in service between Jan. 1, 2006, through Dec. 31, 2007.