Is anyone here familiar with the government's requirements in this regard? I am trying to get a central HVAC system installed in my restaurant and want to learn about possible tax breaks, all well as the equipment itself. I asked my CPA. This is their response, but I don't exactly understand the last part about the 50% comparison.
Here is a brief synopsis of the Energy Efficient Commercial Buildings Deduction…..please note that it does have to be part of a plan….
Deduction for Energy Efficient Commercial Building Property
For property placed in service in 2006 or 2007, you can deduct the cost of energy efficient building property. The maximum deduction for any building for all tax years is $1.80 multiplied by the square footage of the building. Energy efficient building property includes property installed as part of:
Interior lighting systems;
Heating, cooling, ventilation, and hot water systems; and
The building envelope.
The property must be certified as being part of a plan to reduce annual energy and power costs for those systems by at least 50% in comparison to a reference building that meets certain requirements.
You should ask your local utility company. They should have a dept that deals with energy eff. installs and upgrades and the related rebates and tx incentives. they may even offer some free consulting on your project.