Sustainability ♦ Legislation & Regulations
Because legislation is subject to frequent change, talk to your Hagemeyer USA representative who will have the most current information available.
EPAct (Energy Policy Act)
What is EPAct?
- Promotes energy-efficiency and conservation by providing attractive federal tax incentives
- Establishes new tax deduction for specific energy-efficient solutions in commercial buildings
- On August 8, 2005, President Bush signed the Energy Policy Act of 2005 (EPAct 2005)
- On October 3, 2008, the Emergency Economic Stabilization Act of 2008 act extended the program to December 31, 2013
EPAct 2005 Qualifications for Lighting
To qualify for EPAct 2005 tax deductions, commercial building properties must:
- Be located in the U.S. and fall within scope of ASHRAE/IES Standard 90.1-2001
- Receive an upgrade/installation of:
- Interior lighting system, or
- Building envelope that was put in service between January 1, 2006 and December 31, 2013
- Be certified as being an “energy-efficient property, defined as one that has 50% of the total annual energy and power costs of a building satisfying ASRAE/IES Standard 90.1-2001
To receive the tax deduction, the deduction must:
- Not exceed the cost of the upgrade, including materials, labor and design, and
- Be taken in the taxable year the property or upgrade is placed in service (2006-2013); and
- Be calculated based on the square footage of the upgrade building
- Up to $1.80/sq.ft for “energy-efficient property”
- Up to $0.60/sq.ft each for interior lighting, HVAC/hot water and building envelopes
To claim the tax deduction*, you must be:
- The owner or entity who paid to have the commercial building constructed or renovated
- The party primarily responsible for designing the publicly owned property
*The trusty DISCLAIMER…
Circumstances vary widely. Before pursuing or claiming any deduction described herein, consult your tax advisor concerning your specific tax situation and potential changes in the applicable tax laws.
Where is EPAct Useful?
Good candidates:
- Locations with large square footage
- Upgrades from T12 systems or standard Metal Halide
- Upgrade with new fixtures, reflectors, and/or ballasts
- Building already designed to meet ASHRAE 90.1-2004 standards
Poor candidates:
- Facilities just replacing lamps
- Outdoor facilities
How it works: