Tax deductions up to $1.80 per sqft may be captured as lighting, HVAC, or building envelope projects are performed that meet certain energy reduction criteria. In years past, this program has been retro-actively put into place, meaning it was approved for the previous year and therefor the financials could not be recognized during the presenting of projects. These tax deductions have the potential to push projects into the acceptable rate of return category for decision makers on capital improvement projects.
Furthermore, for government agencies or tax exempt clients, these tax deductions can be passed through to contractors, energy consultants, architects, or others that are involved in the project.
***As with any tax deduction or federal incentive, always consult with your CPA.***