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Tax Incentives

The Energy Policy Act of 2005 is an attempt to fight growing energy problems by providing tax incentives and loan guarantees for energy production of various types. The Act contains provisions for commercial buildings that make improvements to their energy systems.

Energy improvements completed in 2006 and 2007 are eligible for tax deductions of as much as $1.80 per square foot. The incentives focus on improvements to lighting, HVAC and building envelope. The commercial building tax deductions can be used to improve the payback period of a prospective energy improvement investment.

The most common qualifying projects are in the lighting area. Industrial spaces such as Manufacturing, Warehouse and Distribution Centers are typically lit with 400W Metal Halide fixtures. These fixtures are commonly being upgraded with Hi-Bay Fluorescent fixtures that can cut energy use in half as well as qualify the building for tax deductions. In the Northeast paybacks for this project can get below one year.

Contact OptiDyn today.

Energy Efficient Commercial Buildings Tax Deduction

Incentive Type Corporate Deduction
Eligible Efficiency Technologies Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners, CHP/Cogeneration, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding, Roofs
Applicable Sectors Commercial, Construction
Amount $0.30-$1.80 per square foot, depending on technology and amount of energy reduction
Maximum Incentive $1.80 per square foot
Date Enacted 8/8/2005
Effective Date 1/1/2006
Expiration Date 12/31/2008

Rebate Programs for Renewable Energy Technologies

DSIRE: www.dsireusa.org February 2007
Map of the United States showing which states have rebate programs for renewable energy technologies

Energy Incentives for Compressed Air

Connecticut
Connecticut Light & Power - Energy Conscious Blueprint Program
Connecticut Light & Power - Energy Opportunities Efficiency Program
Connecticut Light & Power - Operation and Maintenance Program
The United Illuminating Company - Energy Opportunities Program
Idaho
Idaho Power - Industrial Energy Efficiency Program
Massachusetts
National Grid (Mass Electric) - Commercial Energy Efficiency Incentive Programs
National Grid (Nantucket) - Commercial Energy Efficiency Incentive Programs
NSTAR - Commercial Energy Solutions Programs
Minnesota
Alliant Energy-IP&L - Business Energy Efficiency Rebate Programs
Xcel Energy - Business Energy Efficiency Rebate Programs
New Hampshire
National Grid (Granite State Electric) - Commercial Energy Efficiency Incentive Programs
PSNH - Large Commercial and Industrial Energy Efficiency Rebate Program
Renewable Energy and Energy Efficiency Business Loan
Unitil - Commercial and Industrial Energy Efficiency Programs
Ohio
Energy Loan Fund (ELF) Grants - Energy Efficiency
Oregon
Springfield Utility Board - Energy Savings Plan Program
Rhode Island
National Grid (Narragansett) - Commercial Energy Efficiency Incentive Programs
Washington
Lewis County PUD - Commercial and Industrial Energy Efficiency Rebate Program
Seattle City Light - Commercial Energy Efficiency Rebate Programs
Wisconsin
Focus on Energy - Commercial/Industrial Efficiency Incentives
We Energies - Prescriptive Incentive Program
Wyoming
Pacific Power - Energy FinAnswer Program

Incentives for Motor-ASDs/VSDs

Added Value for Closed Circuit Cooling and Refrigeration Systems

Arizona
APS - Energy Efficiency Solutions for Business
California
Burbank Water & Power - Business Energy Efficiency Rebate Program
PG&E - Residential Energy Efficiency Rebate Programs
SCE - Agricultural Efficiency Plus Program
SMUD - Commercial Energy Efficiency Rebate Program
Connecticut
The United Illuminating Company - Energy Opportunities Program
Idaho
Avista Utilities - Home Improvement and New Home Construction Energy Efficiency Incentives
Avista Utilities - Supermarket and Grocery Store Refrigeration Rebates
Low Interest Energy Loan Programs
Rocky Mountain Power - FinAnswer Express
Iowa
Alliant Energy - Business Energy Efficiency Rebate Programs
Alliant Energy - Farm Equipment Energy Efficiency Incentives
MidAmerican Energy - Motors and Variable Speed Drives Energy Efficiency Program
Massachusetts
National Grid (Mass Electric) - Commercial Energy Efficiency Incentive Programs
National Grid (Nantucket) - Commercial Energy Efficiency Incentive Programs
NSTAR - Commercial Energy Solutions Programs
Minnesota
Alexandria Light and Power - Commercial Energy Efficiency Rebate Program
Alliant Energy-IP&L - Business Energy Efficiency Rebate Programs
Alliant Energy-IP&L - Farm Equipment Energy Efficiency Incentives
Anoka Municipal Utility - Commercial Energy Efficiency Rebate Program
Austin Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program
Dakota Electric Association - Commercial and Industrial Energy Efficiency Rebate Program
Minnesota Valley Electric Cooperative - Commercial and Industrial Energy Efficiency Rebate Program
Minnesota Valley Electric Cooperative - Commercial and Industrial Grant Program
Otter Tail Power Company - Dollar Smart Energy Efficiency Financing Program
Owatonna Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program
Rochester Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program
Shakopee Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program
New Hampshire
National Grid (Granite State Electric) - Commercial Energy Efficiency Incentive Programs
New Hampshire Electric Co-Op - Large Business Energy Solutions
New Hampshire Electric Co-Op - New Equipment and Construction Program
PSNH - Large Commercial and Industrial Energy Efficiency Rebate Program
Renewable Energy and Energy Efficiency Business Loan
Unitil - Commercial and Industrial Energy Efficiency Programs
New Jersey
New Jersey SmartStart Buildings
New York
NYSERDA - Clean Energy Technology Manufacturing Incentive Program
NYSERDA - Peak Load Reduction Program
North Carolina
Energy Improvement Loan Program
Ohio
Energy Loan Fund (ELF) Grants - Energy Efficiency
Oregon
Energy Trust - Business Energy Efficiency Rebate Program for New Buildings
Springfield Utility Board - Energy Savings Plan Program
Rhode Island
National Grid (Narragansett) - Commercial Energy Efficiency Incentive Programs
South Dakota
Otter Tail Power Company - Dollar Smart Financing Program
Utah
Rocky Mountain Power - FinAnswer Express
Washington
Avista Utilities - Home Improvement and New Home Construction Energy Efficiency Incentives
Avista Utilities - Supermarket and Grocery Store Refrigeration Rebates
Lewis County PUD - Commercial and Industrial Energy Efficiency Rebate Program
Pacific Power - FinAnswer Express
Puget Sound Energy - Commercial HVAC Equipment Energy Efficiency Rebate Program
Seattle City Light - Commercial Energy Efficiency Rebate Programs
Wisconsin
Cedarburg Light & Water Utility - Commercial Energy Efficiency Rebate Program
Focus on Energy - Commercial/Industrial Efficiency Incentives
We Energies - Prescriptive Incentive Program

Financial Incentives for Energy Efficiency

S = State/Territory     U = Utility

State/Territory Personal Tax Corporate Tax Sales Tax Property Tax Rebates Grants Loans Bonds
Alabama 13-U 12-U, 1-S
Alaska 2-U 3-S
Arizona 1-S 2-U 2-U
Arkansas 3-U, 1-S
California 1-S 56-U 5-U 7-U, 1-S
Colorado 16-U 1-U 2-U
Connecticut 14-U 2-U, 2-S 4-U, 2-S
Delaware 2-S
Florida 20-U 2-U, 1-S 3-U
Georgia 12-U 12-U
Hawaii 5-U
Idaho 1-S 14-U 1-S, 2-U
Illinois 2-U, 1-S 2-S
Indiana 4-U 1-U
Iowa 14-U 1-S 3-U, 1-S
Kansas 1-U 1-S
Kentucky 12-U 7-U
Louisiana 1-U, 1-S 1-S
Maine 1-U, 2-S 2-S
Maryland 1-S 1-S 1-S 1-U, 2-S
Massachusetts 2-S 2-S 27-U 1-U 6-U
Michigan 3-S
Minnesota 39-U 6-U 4-U, 4-S
Mississippi 5-U 3-U, 1-S
Missouri 8-U 1-U, 1-S
Montana 1-S 1-S 5-U 1-U 1-U, 1-S 1-S
Nebraska 3-U 1-S
Nevada 1-S 5-U
New Hampshire 12-U 2-U 2-U, 1-S
New Jersey 5-S 1-U, 2-S
New Mexico 3-U 1-S
New York 1-S 1-S 1-S 3-U, 3-S 3-S 2-S
North Carolina 6-U, 1-S 11-U, 1-S
North Dakota 1-S 1-U
Ohio 1-U 1-S 2-S
Oklahoma 1-S 1-U 2-S
Oregon 1-S 1-S 27-U, 1-S 3-U, 1-S 13-U, 1-S
Pennsylvania 3-S 1-U, 3-S
Rhode Island 2-U, 2-S 2-U
South Carolina 9-U, 1-S
South Dakota 2-U 1-U 1-U
Tennessee 21-U 23-U, 2-S
Texas 26-U 5-U, 1-S
Utah 2-U
Vermont 3-U, 9-S 1-U, 1-S
Virginia 1-S 3-U, 1-S
Washington 56-U 3-U 8-U
West Virginia 1-S
Wisconsin 13-U, 4-S 2-U 1-U, 1-S
Wyoming 3-U 1-S 1-U
D.C. 1-S 1-S
Totals 11 6 0 3 492 54 200 2

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