The information contained on this site about The Energy Policy Act of 2005 is not offered as tax advice and should not be taken as such. Any information here or any other document referred to is meant for general informational purposes only. Please consult with your tax advisor to determine the specific tax treatment appropriate for your company.
Allocation of Deduction
The deduction may be allocated to design firms for commercial building property expenditures made by a public entity, such as public schools, hospitals or government offices.
A 'designer' is a person that creates the technical specifications for installation of energy efficient commercial building property. A designer may include, for example, an architect, engineer, contractor, environmental consultant or energy services provider who creates the technical specifications for a new building or an addition to an existing building that incorporates energy efficient commercial building property. A person that merely installs, repairs, or maintains the property is not a designer.
If more than one designer is responsible for creating the technical specifications for installation of energy efficient commercial building property on or in a government-owned building, the owner of the building shall:
1. determine which designer is primarily responsible and allocate the full deduction to that designer, or
2. at the owner’s discretion, allocate the deduction among several designers.
1. Design and install the compliant lighting system
2. Have a ‘qualified’ person certify the project
3. Claim deduction on tax form
4. Attach a copy of the compliance certificate to the file copy of the tax returns to be brought out if audited