ROSSLYN, Va., October 4, 2006. The National Electrical Manufacturers Association (NEMA) today issued its Guidance on Energy Policy Act Commercial Building's Tax Deduction Certification Letters to answer the many questions received from project contractors and designers on how to satisfy the project certification requirements of EPAct 2005. The NEMA document provides sample language and examples for how the certification letter may be done. To download it, go to http://www.nema.org/gov/efficientbuildings/.
The Energy Policy Act of 2005, Section 1331, provides for a tax deduction of up to $1.80 per square foot for new or retrofit energy efficient commercial buildings that reduce energy use by 50 percent when compared to a national standard (ASHRAE/IESNA 90.1-2001, as of April 2003). Internal Revenue Service Notice 2006-52, as revised June 26, 2006, provides for a technical certification by a professional engineer or contractor licensed in the building's jurisdiction. This certification outcome may be used by a tax professional in calculations for the tax deduction. The certification also provides assurance to the building owner that the building meets its required energy savings goals.
NEMA and its members have led a comprehensive program of advocacy and stakeholder education to facilitate implementation of the tax provision. In America's "service economy," commercial buildings are a major target for energy efficiency improvements.
NEMA is the trade association of choice for the electrical manufacturing industry. Founded in 1926 and headquartered near Washington, D.C., its 430 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. These products are used in utility, medical imaging, industrial, commercial, institutional, and residential applications. Domestic production of electrical products sold worldwide exceeds $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing, São Paulo, and Mexico City.
Dir, Energy Infrastructure