We at sEnergy can assist you on any applicable energy credit or deductions as well! Below are some of the guidelines for your clarity on the diffeence between tax credits, tax deductions, tax incentives for your perousal.

Don't worry, we will help you aout with this step of your energy saving/alternative journey as well...

Tax Deductions for Commercial Buildings 

The Department of Energy, through the Office of Energy Efficiency and Renewable Energy’s (EERE) Building Technologies Program works closely with the building industry and manufacturers to conduct research and development on technologies and practices for energy efficiency. The Department also promotes energy and money-saving opportunities to builders and consumers and works with state and local regulatory groups to improve building codes and appliance standards.

In addition, the Office of Hearings and Appeals plays a regulatory role in the area of Energy Efficiency as it relates to the Energy Policy and Conservation Act.

The Federal Energy Management Program (FEMP) in the Office of Energy Efficiency and Renewable Energy promotes energy efficiency and the use of renewable energy resources at federal facilities all over the world including military installations and our very own DOE sites. FEMP does this to ensure that the federal government, the largest energy consumer, works toward meeting the goals set forth in legislative mandates and Executives Orders for saving energy. Federal agencies are continually striving to meet these legislative and Presidential mandates, demonstrate leadership, and save taxpayer dollars with responsible and cleaner energy choices.
This information is presented to provide general information on the new federal tax deductions and is not intended to be an interpretation of eligibility for the tax credit. Please consult with a qualified tax advisor to discuss eligibility.

What is the tax deduction amount?

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. 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. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2013.

How does sEnergy products contribute to the heating and cooling load reduction and energy savings?

In the IRS Notice 2006-52 (Part III - Administrative, Procedural, and Miscellaneous), section .02 Energy Efficient Commercial Building Property, outlines that the interior lighting systems, heating, cooling, ventilation, and hot water systems, and building envelope that have been incorporated into the building, or that the taxpayer plans to incorporate into the building subsequent to the installation of such property, will reduce the total annual energy and power costs with respect to combined usage of the building’s heating, cooling, ventilation, hot water, and interior lighting systems by 50 percent or more as compared to a Reference Building that meets the minimum requirements of Standard 90.1-2001.

IRS explains how to qualify for energy efficient commercial building deduction

Notice 2006-52, 2006-26 IRB; IR 2006-88
IRS has issued a notice and an accompanying news release explaining how commercial building owners or leaseholders can qualify for the new Code Sec. 179D deduction for making their buildings energy efficient. The notice establishes a process to certify the required energy savings in order to claim the deduction.

How deduction works. The Code Sec. 179D deduction, which was enacted in the Energy Policy Act of 2005, allows taxpayers to deduct the cost of energy-efficient property installed in commercial buildings. As discussed in detail in Federal Taxes Weekly Alert 08/04/2005, the amount deductible may be as much as $1.80 per square foot of building floor area for buildings that achieve a 50% energy savings target. Notice 2006-52 provides that buildings below the 50% threshold may, nevertheless, qualify for a deduction of up to 60¢ per square foot of building floor area if they meet a 16 2/3% energy savings target.

Certification procedure. Before claiming the deduction, the taxpayer must obtain a certification that the required energy savings will be achieved. A taxpayer need not attach it to his return claiming the deduction. However, a taxpayer claiming a Code Sec. 179D deduction should retain the certification as part of its records for purposes of Reg. § 1.6001-1(a), which requires taxpayers to maintain books and records establishing the entitlement to, and amount of, any claimed deduction. Notice 2006-52 prescribes the content of the certification and the qualifications that must be met by the person providing it.

Software for calculating energy savings. Notice 2006-52 also announces that the Department of Energy will create and maintain a public list of software that must be used to calculate energy savings for purposes of providing the certification. It also provides a process that software developers must use if they desire to have their software included on the list.

Consumer Energy Tax Incentives (What the American Recovery and Reinvestment Act Means to You)
 
The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343). Businesses, utilities, and governments are also eligible for tax credits.

See the summary of the energy tax incentives included in the Emergency Economic Stabilization Act of 2008.

About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

Fuel-efficient vehicles and energy-efficient appliances and products provide many benefits such as better gas mileage –meaning lower gasoline costs, fewer emissions, lower energy bills, increased indoor comfort, and reduced air pollution.

In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. Each state’s energy office web site may have more information on specific state tax information.

Below is a summary of many of the tax credits available to consumers. Please see the ENERGY STAR® page on Federal Tax Credits for Energy Efficiency for more details on federal incentives and the Database of State Incentives for Renewables and Efficiency (DSIRE) for information on federal, state, local, and utility incentives.

• Home Energy Efficiency Improvement Tax Credits
• Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers.
• Residential Renewable Energy Tax Credits
  Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.
• Automobile Tax Credits
  Hybrid Gas-Electric and Alternative Fuel Vehicles
  Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.
• This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company’s vehicles will be gradually reduced over the course fifteen months. See the IRS's Summary of the Credit for Qualified Hybrid Vehicles for information on the status of specific vehicle eligibility.
• Alternative-fuel vehicles, diesel vehicles with advanced lean-burn technologies, and fuel-cell vehicles are also eligible for tax credits. See the IRS summary of credits available for Alternative Motor Vehicles.
• Plug-In Electric Vehicles
  Plug-in electric vehicles also qualify for a tax credit starting January 1, 2010. The credit for passenger vehicles and light trucks ranges from $2,500 to $7,500, depending on battery capacity. The first 200,000 vehicles sold by each manufacturer are eligible for the full tax credit; the credit will then phase out over a year.
• Plug-In Hybrid Conversion Kits
  Hybrid vehicle owners who purchase a qualified plug-in hybrid conversion kit are eligible for a 10% credit, capped at $4,000, through 2011.

* Sources: ENERGYSTAR.gov and IRS.gov
** The IRS will determine final tax credit amounts. As more information becomes available, it will be posted on our website.