BOMA Idaho Power Tax Presentation

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Federal Tax Benefits for Energy Efficient Construction and Renovation BOMA Boise April 20, 2006 Ed Wisniewski Deputy Director CEE: 

Federal Tax Benefits for Energy Efficient Construction and Renovation BOMA Boise April 20, 2006 Ed Wisniewski Deputy Director CEE

About CEE: 

About CEE 501c(3) nonprofit organization Funded by 79 members in 28 states and 2 provinces as well as government grants Members direct more than $2 billion in efficiency program resource procurement -- over 90% of US ratepayer efficiency funding Provides a forum for working together as a virtual industry (and with ENERGY STAR, other industries) Disclaimer: Presentation is for general information purposes. Consult with a professional tax advisor.

Acknowledgements: 

Acknowledgements David Goldstein Energy Program Director Natural Resources Defense Council Joseph Mikrut Partner Capitol Tax Partners, LLC Kyle Pitsor Vice President, Government Relations National Electrical Manufacturers Association

What’s EPACT and What’s In It For Me? : 

What’s EPACT and What’s In It For Me? SECTION 1331 OF H.R. 6, (PUBLIC LAW 109-58) Tax Deduction Provision for Energy- Efficient Commercial Building Property Extra Financial Assistance

Building and Expenditure Type: 

Building and Expenditure Type Tax Deduction for Measures to Achieve 50% Savings Compared to ASHRAE 90.1-2001 Baseline. Interior Lighting Heating, Cooling, Ventilation, Hot Water Systems Building Envelope

Deduction Available : 

Deduction Available Equal to the Cost of the EE Measure Subject to a Cap of $1.80 per sq/ ft. Allowed During the Year Property is Placed in Service Current Law – 2006 and 2007 Bill to Extend Additional 5 Years

Partial Deductions For Sub Systems: 

Partial Deductions For Sub Systems Up to $.60 per sq. ft. for Each of Three Subsystems Interior Lighting (Interim Rules in Place) Heating, cooling, ventilation, and hot water systems Building Envelope

Lighting Partial Deduction: 

Lighting Partial Deduction Sliding Scale Based Upon Lighting Power Density Reductions Table 9.3.1.1 or 9.3.1.2 of ASHRAE/IESNA Standard 90.1 - 2001 $.30 for 25 Percent Reduction $.60 for 40 Percent Reduction Control Requirements Must Be Met

Sample Measures: 

Sample Measures Compliance is similar to energy codes such as the IECC or ASHRAE 90.1. Technologies that are credited include: More efficient cooling and water heating equipment Better controls than required by code Reductions in losses from ducts and fans Better insulation and windows Reducing or eliminating simultaneous heating and cooling More efficient luminaires, ballasts, and lamps, and selection of more efficient light sources

Additional Examples: 

Additional Examples Daylighting Commissioning CHP Semi-Conditioned Spaces Low-Pressure Duct Systems

Certification Requirements: 

Certification Requirements Secretary of Treasury to Promulgate Regulations Describe Methods to Calculate Energy and Power Costs “Qualify” Software Establish Requirements for “Certifiers” Identify Verification Requirements

Beneficiary : 

Beneficiary Deduction for the Company that Owns the Property For Public Buildings -- Provision to Allocate Deduction to Primary Designer of the Property

Resources for Potential Support: 

Resources for Potential Support Idaho Power www.Idahopower.com Northwest Energy Efficiency Alliance www.nwalliance.org Commercial Building Tax Coalition www.efficientbuildings.org American Society of Heating, Refrigerating and Air-Conditioning Engineers www.ashrae.org New Buildings Institute www.newbuildings.org US Department of Energy www.doe.gov US Environmental Protection Agency www.epa.gov BOMA Energy Efficiency Program www.boma.org/aboutboma/beep Consortium for Energy Efficiency www.cee1.org

www.Idahopower.com: 

www.Idahopower.com

Potential Utility Incentives : 

Potential Utility Incentives

BOMA Training: 

BOMA Training BOMA Energy Efficiency Program (BEEP). BEEP is an operational excellence program designed to educate owners and managers about the financial and environmental benefits of improving energy efficiency. www.boma.org/aboutboma/beep

NW Alliance – Better Bricks: 

NW Alliance – Better Bricks Resource for information and services to help architects, developers, builders and facilities managers incorporate energy efficiency into their building designs, construction plans and day-to-day maintenance operations. www.betterbricks.com                                  

US EPA ENERGY STAR®: 

US EPA ENERGY STAR® ENERGY STAR offers guidelines for energy management and improving energy efficiency Includes online national energy performance rating system to benchmark energy performance Provides no-cost training programs geared toward commercial real estate professions Also includes an online directory of product and service providers

Possible Guidance on Meeting Advanced Energy Targets: 

Possible Guidance on Meeting Advanced Energy Targets New Buildings Institute (NBI) Advanced Buildings™ Suite: Benchmark™ Benefits Guide Reference Guide Advanced Lighting Guidelines These documents describe processes for designing with energy efficiency as well as architectural and engineering choices Case Studies Available at: www.advancedbuildings.net

CBTD Coalition: 

CBTD Coalition Implementation requires promptly getting the regulatory rules right and to vigorously promote the provision. NEMA has brought together a broad stakeholder coalition representing building owners, designers, manufacturers, distributors, installation contractors, efficiency advocates, and government to work together to ensure success.

CBTD Progress to Date: 

CBTD Progress to Date Routine Coalition meetings held with stakeholder associations 40 organizations represented Website devoted to the CBTD was launched in December 05 www.efficientbuildings.org Communications plan developed -- CBTD clearinghouse NEMA has prepared a tri-fold pocket guide to the deduction, which is on the NEMA website, www.nema.org

Working Together: 

Working Together Consortium for Energy Efficiency (www.cee1.org) members are working with private sector companies and trade associations to provide support to comply.

Contact information:: 

Contact information: David B. Goldstein, Ph.D. Natural Resources Defense Council dgoldstein@nrdc.org Joseph Mikrut Capitol Tax Partners mikrut@capitoltax.com Kyle Pitsor National Electrical Manufacturers Association kyl_pitsor@nema.org Ed Wisniewski CEE ewisniewski@cee1.org

MARK YOUR CALENDARS!: 

MARK YOUR CALENDARS! Want more information on this topic? Plan to attend BOMA International’s North American Commercial Real Estate Congress and The Office Building Show where updates and additional education on the Energy Bill are planned! When: June 24-27 Where: Dallas, TX For more information visit: www.bomaconvention.org or call 202-326-6341.