"The information on this website is meant to provide a general overview of the tax provisions for the interim rules of lighting systems listed in the Energy Policy Act of 2005. In all cases the services of a professional tax accountant should be retained to determine the specific tax treatment appropriate for your company. Requirements for lighting levels and controls, in accordance with EPAct 2005, must also be satisfied for eligibility. Rexel will not, in any way, accept any liability for decisions made based on the contents of this preliminary explanation."


Legislative Updates



IRS Guidelines

Certificate of Compliance - EPAct 2005

84 KB

Guidance EPACT Tax Incentive Certification

88 KB



EPAct Update - Tax Deduction

1. Whole Tax Deduction:
One time deduction of $1.80 per sqf for reducing overall interior building power by at least 50% over ASHRAE 90.1-2001

2. Partial Tax Deduction:
Interim Lighting Rule: one time deduction of $0.30-$0.60 per sqf for reducing interior lighting power by 25-40% (50% for warehouses) over ASHRAE 90.1-2001

Permanent Lighting Rule (NEW): one time deduction of $0.60 per sqf if the lighting system upgrade reduces overall interior building power by at least 16.66% over ASHRAE 90.1-2001

EPAct Update - IRS Guidelines

Certificate of Compliance must be completed by "qualified individual"

Who is considered a "qualified individual"?

Not related to the taxpayer claiming the deduction

Is an engineer or contractor that is properly licensed as a professional engineer or contractor in the jurisdiction in which the building is located

Has represented in writing to the taxpayer that he or she has the requisite qualifications to provide the certification required

For "Complete Deduction" (all three building systems) or "Partial Deduction" under new Permanent Rules, approved software for building modeling must be used.

The following software meets the requirements contained in IRS Notice 2006-52 dated June 2, 2006: