Various tax credits and deductions are available depending on project type and the technology involved. These benefits change frequently, contact an ERG professional to find out which credits and deductions are applicable to your project.
Under the Bipartisan Budget Act of 2018, the renewable energy tax credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems.
Tax Credit:
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022.
A tax deduction of up to $1.80 per square foot is available to owners or designers of commercial buildings or systems that save at least 50% of the heating and cooling energy as compared to ASHRAE Standard 90.1-2007 (or 90.1-2001 for buildings or systems placed in service before January 1, 2018). The deduction is available for buildings or systems placed in service after December 31, 2017 through December 31, 2021. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems.
Other Tax Benefits:
- Business Energy Investment Tax Credit (ITC)
- Energy-Efficient Commercial Buildings Tax Deduction
- Renewable Electricity Production Tax Credit (PTC)
- Modified Accelerated Cost-Recovery System (MACRS)
The Energy Star website has a wealth of information regarding federal tax credits for energy efficiency.
