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Title: Clarifying EPAct 2005 Federal Tax Incentives for Commercial Buildings


No abstract prepared.

Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
OSTI Identifier:
DOE Contract Number:
Resource Type:
Journal Article
Resource Relation:
Journal Name: ASHRAE Journal; Journal Volume: 49; Journal Issue: 3, March 2007
Country of Publication:
United States

Citation Formats

Deru, M., and Crawley, D. Clarifying EPAct 2005 Federal Tax Incentives for Commercial Buildings. United States: N. p., 2007. Web.
Deru, M., & Crawley, D. Clarifying EPAct 2005 Federal Tax Incentives for Commercial Buildings. United States.
Deru, M., and Crawley, D. Thu . "Clarifying EPAct 2005 Federal Tax Incentives for Commercial Buildings". United States. doi:.
title = {Clarifying EPAct 2005 Federal Tax Incentives for Commercial Buildings},
author = {Deru, M. and Crawley, D.},
abstractNote = {No abstract prepared.},
doi = {},
journal = {ASHRAE Journal},
number = 3, March 2007,
volume = 49,
place = {United States},
year = {Thu Mar 01 00:00:00 EST 2007},
month = {Thu Mar 01 00:00:00 EST 2007}
  • The Energy Tax Act of 1978 was the first time that Congress enacted tax legislation specifically addressing the general energy problem: the insecurity of the US oil supply. This article reviews the business-oriented provisions of the Internal Revenue Code of 1954, as amended, that provides tax incentives in the form of tax-exempt bonds for certain hydroelectric-generating and solid-waste energy-producing facilities and renewable energy projects, tax credits for producing fuel from a nonconventional source and for alcohol used as a fuel, and a general credit for energy property. In some instances, these provisions reflect that half-hearted approach Congress has taken manymore » times in providing incentives and then limiting their use. One conclusion is that providing even greater tax incentives, along with other more direct forms of government financial support, may be the wisest use of government funds to help private enterprise make the enormous capital investment needed today if sufficient alternative energy is to be available when the future price of oil makes these projects economically competitive. 168 references.« less
  • A hypothetical case study is used to illustrate how Federal tax incentives can be used to preserve open space as a natural resource. Tax incentives and disincentives both encourage and discourage open-space preservation, but if understood in their application and effect by family counsel, land-use planners, real-estate experts, local conservation commissions and town council, much more can be done to achieve protection. Direct funding or subsidy programs at the Federal level and indirect subsidy through charitable deductions are available. The subsidy may not last indefinitely in its present form unless the support is contingent on compliance with sound land-use regulation.
  • This paper analyzes the effect of federal corporate income tax incentives on coal and nuclear power developments. It estimates (1) the magnitudes of tax incentives in relationship to utility costs, (2) the relative magnitude of benefits going to coal and nuclear facilities, and (3) the influence which the time paths of tax payments and after-tax net income have upon possible incentives for premature construction and excess capacity. Utility planners currently believe that nuclear power enjoys an after-tax competitive advantage over coal plants. Investigation of investment-related credits, deductions, and exclusions in the Internal Revenue Code shows that nuclear power enjoys amore » more favorable tax subsidy because of its greater capital intensity. In the absence of tax subsidies, no utility would prefer nuclear power to coal generation. Tax changes now under consideration could increase the tax benefits to both without disturbing the differential advantage held by nuclear power. 43 references, 2 figures, 4 tables.« less
  • This paper (1) estimates the total costs of federal expenditures in support of incentives for the development of commercial nuclear energy through 1988, and (2) analyzes the results and benefits to the nation of this federal investment. The federal incentives analyzed include research and development, regulation of commercial nuclear energy, tax incentives, waste management and disposal, enrichment plants, liability insurance, the uranium mining industry, and all other federal support activities. The authors estimate that net federal incentives totaled about $45-50 billion (1988 dollars). They estimate the results of the federal incentives, focusing on six categories, namely, electric energy produced, themore » total (direct plus indirect) economic benefits of the industry created, R and D program benefits, value of energy imports displaced, environmental effects, and health, safety, and risk effects. The results total $1.9 trillion, with approximately $250-300 billion identified as net benefits. The authors conclude that the high return on the investment justified federal incentives for nuclear energy development over the past four decades and that the federal government and the nation have received a significant return on the incentives investment.« less
  • This document provides guidance for modeling and inspecting energy-efficient property in commercial buildings for certification of the energy and power cost savings related to Section 179D of the Internal Revenue Code (IRC) enacted in Section 1331 of the 2005 Energy Policy Act (EPAct) of 2005, noted in Internal Revenue Service (IRS) Notices 2006-52 (IRS 2006), 2008-40 (IRS 2008) and 2012-26 (IRS 2012), and updated by the Protecting Americans from Tax Hikes (PATH) Act of 2015. Specifically, Section 179D provides federal tax deductions for energy-efficient property related to a commercial building's envelope; interior lighting; heating, ventilating, and air conditioning (HVAC); andmore » service hot water (SHW) systems. This document applies to buildings placed in service on or after January 1, 2016.« less