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AB1103 - Lighting Audit Services

EPAct Certification Services

Over the past several years Lighting Audit Services has been increasing its network of engineers, tax consultants, and energy professionals. With the help of this network we are able to certify projects for the 179d epact tax deduction in all 50 states.

Our EPAct Certification Services Include:

  • Energy Modeling To Achieve The $1.80 Sq. Ft. EPAct Tax Deduction For All 3 Systems
  • Energy Modeling To Achieve The $1.20 Sq. Ft. EPAct Tax Deduction For 2 of 3 Systems
  • Energy Modeling To Achieve The $.60 Sq. Ft. EPAct Tax Deduction For 1 of 3 Systems
  • The Industries Best EPAct Lighting Audit Using the "Interim Lighting Rules"
  • Design Review And EPAct Optimization To Ensure The Maximum EPAct Tax Deduction
  • 179d Consulting From Our Network Of Tax Professionals To Ensure Proper Filing
  • Past Project Reviews Up To 3 Years For Ammended Tax Returns

EPAct 2005 Tax Deduction

The Energy Policy Act of 2005 (epact) created the "Energy Efficient Commercial Buildings Tax Deduction", which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.

EPAct 2005 Extension

The Emergency Economic Stabilization Act of 2008, signed into law by President George W. Bush on Oct. 3 includes a five-year extension of the "Energy Efficient Commercial Buildings Tax Deduction".

The tax deduction is now scheduled to expire on December 31st, 2013.

The EPAct tax incentive is a 179d EPAct tax deduction not an EPAct tax credit.

The EPAct Tax Deduction offers an accelerated tax deduction equal to the complete cost of installing "energy-efficient commercial property" in a commercial building, capped at $1.80/sq. ft.

To achieve the maximum tax deduction of $1.80/sq.ft the total annual energy and power costs must be reduced to at least 50% less than a building satisfying ASHRAE Standard 90.1-2001 as determined by DOE EPAct approved software. A list of EPAct approved software is provided on the DOE website.

EPAct Lighting

The focus of this site is the EPAct lighting tax deduction which is capped at $0.60/sq. ft.

What This Means When The Building Is Privately Owned:

$0.30 to $0.60/sq. ft. can potentially be deducted by the building owner.

The cap is the total cost of the lighting project.

Therefore the entire cost of the lighting project can be deducted in the same year.

What This Means When The Building Is Publicly Owned:

The tax deduction can be applied to the "EPAct designer of record" and can be divided among several companies.

Method of Taxpayer or Designer of Record to Claim the EPAct Tax Deduction and receive EPAct Certification:

The IRS released interim guidance (IRS Notice 2006-52) in June 2006 to establish a process to allow building owners and designers of record to obtain EPAct Certification and claim the EPAct tax deduction. IRS Notice 2008-40 was issued in March of 2008 to further clarify the rules of EPAct compliance. NREL published a report (TP-550-40228) in February 2007 which provides compliance guidelines for the energy modeling and inspection of energy savings required by the statute.

According to the Interim Rules for EPAct Lighting Projects:

  • The lighting system energy savings target is a LPD (Lighting Power Density), or watts per square foot, that is 25% to 40% lower than the minimum requirements of ASHRAE Standard 90.1–2001
  • The potential amount of the EPAct tax deduction is $0.30 to $0.60 per square foot depending upon the percentage that the LPD is reduced beyond ASHRAE Standard 90.1 – 2001
  • For warehouses, the lighting power density (W/sq. ft.) must be 50% lower than the minimum requirements of ASHRAE Standard 90.1–2001 to be eligible for the $0.60 per square foot EPAct tax deduction.
  • Lighting power density (W/sq. ft.) reductions of <25% are ineligible for any EPAct tax deduction.

In addition to demonstrating a reduction in lighting power density lower than the requirements for ASHRAE Standard 90.1–2001:

  • Control provisions (i.e. Automatic Lighting Shutoff) relating to lighting systems as set forth in the Standard must be met.
  • EPAct Bi-level switching must be installed.
  • The lighting system must also meet the minimum requirements for calculated light levels as set forth in the 9th Edition of the IESNA Lighting Handbook.

Visit the Illuminating Engineering Society of North America for information on obtaining the lighting handbook.

What This Means To The Auditing Team:

The lighting audit must now contain 3 additional data points per space to be EPAct compliant.

  1. Foot-Candle Measurements.
  2. This is to verify the lighting system meets the minimum requirements set forth in the 9th Edition of the IESNA Lighting Handbook.
  3. Room Dimensions (Sq. Ft.) This is to document existing as well as proposed watts per square foot.
  4. Existing Controls. This is to document bi-level switching and "Automatic Lighting Shutoff" as required by ASHRAE Standard 90.1–2001

Lighting Audit Services Approach:

Completing an epact lighting audit can be a daunting task. However, the tax deduction makes it very attractive to our clients.

Lighting Audit Services has conducted many epact compliant lighting audits. Our auditors are armed with a hand held computer, digital camera, foot-candle meter, ballast frequency meter and laser distance meter.

We audit every space in the building taking applicable measurements in each. Please feel free to Contact Lighting Audit Services regarding the requirements of an epact lighting audit.

Lighting Audit Services Alamodome Lighting Audit

Whether you are seeking epact certification for privately owned buildings or you are a contractor seeking to take the epact tax deduction as a designer of record for government owned buildings, Lighting Audit Services can help.

The Alamodome In San Antonio Texas. Investment Grade Lighting Audit Performed by Lighting Audit Services In 2009.