According to the US Department of Energy, buildings consume around 37% of the energy almost 70% of the electricity produced in the United States. The Energy Policy Act of 2005 (EPAct) was enacted to help save energy by encouraging commercial building owners to incorporate energy efficient features in their buildings. The program was originally scheduled to expire at the end of 2009, but in 2008 EPAct was extended through December 31, 2013. For buildings placed in service between January 1, 2006 and December 31, 2013, the building owner is eligible for a federal tax deduction of up to $1.80 per square foot if certain energy efficiency criteria are met. EPAct has proven to be a great incentive for owners, resulting in significant energy savings and an increased awareness of energy efficient technologies. To fully implement the intent of the legislation, in the case of public buildings where no federal tax liability exists, the designer of the building is allowed to take the deduction upon obtaining a written allocation letter from the owner.

The designer is the “person primarily responsible for the design” and may include an architect, engineer, contractor, environmental consultant or energy services provider who creates the technical specifications for a new building or an addition to an existing building. To qualify for the full $1.80 per square foot deduction, the building must achieve a 50% energy savings as compared to a similar building that would have met the minimum requirements of ASHRAE 90.1 – 2001. The energy savings must be achieved through: (1) the building envelope; (2) the interior lighting system; and (3) HVAC & Hot Water systems. Each system contributes $.60 per square foot to the total deduction and can qualify independently. Partial deductions of from $.30 to $.60 per square foot are also available for lighting under IRS interim rules.

Any building that falls under the guidance of ASHRAE 90.1 – 2001 is eligible and IRS Section 179D defines the specific procedures required to obtain the deduction. Basically, the building must be modeled – both in a “baseline” (2001) version and an then using actual components, using approved building simulation software to determine how many systems qualify for certification. An independent, qualified person must conduct a physical site visit to certify that the qualifying systems were installed in accordance with the modeled documents. The amount of the deduction, taken in the year the building is placed in service, is entered on the tax return of the person applying for the deduction. The IRS allows taxpayers to amend tax returns for up to three years, so it still possible to claim the deduction for a building placed in service in 2007 depending on when the ’07 tax return was filed.
Nilo C. Regojo, AIA, LEED^® AP
nregojo@engineeredtaxservices.com
267.303.1142

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Nilo was born in Miami, Florida, and grew up visiting construction projects with his father, a civil engineer. This early influence directed him to a career in architecture. His love of older buildings led him to Philadelphia. He received his Bachelor of Design from the University of Florida and a Master of Architecture from the University of Pennsylvania.

Nilo’s experience includes working for various architectural firms in Miami and Philadelphia as well as a national developer of historic residential properties. He also ran his own practice for four years. Prior to joining A² Group to develop the firm’s in house architectural practice, Nilo was a principal at spg³ in Philadelphia. His projects draw upon his unique expertise which consists of innovative design tempered with real world experience.

Nilo is a member of the USGBC, the Delaware Valley Green Building Council (DVGBC) and Green Roofs for Healthy Cities. As spg3′s first principal to become a LEED Accredited Professional, he also led the firm’s Sustainability Initiative.

In December 2009, Nilo became a Certified Building Commissioning Professional

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