1. Who is qualified to certify that a commercial building meets all of the requirements of the tax incentive? 

According to the Internal Revenue Service a qualified individual is as follows: 

        1 - Is not related (within the meaning of §45(e)(4)) the taxpayer to claiming the     
             deduction under § 179D;
        2 - Is an engineer or contractor that is properly licensed as a professional engineer or 
             contractor in the jurisdiction in which the building is located; and 
        3 - Has the professional training and expertise to read construction drawings, estimate
              costs, understand construction systems and apply IRS tax code for incentives /
              deductions related to EPAct standards.   

2. What is the maximum deduction available for a whole/partial-building application? 

Tax code allows for a deduction of $1.80/sq.ft based on meeting and exceeding ASHRAE 90.1-2001 Individual systems (Lighting, HVAC and Building Envelope) allow for up to $0.60/sq/ft for each system individually. 

3. Why hasn't your accountant told you about this?
EPAct is a highly specialized tax planning discipline that requires a combination of skills and expertise that most accounting firms don't have. For example, most accounting firms do not have the in-house engineering expertise required to read construction drawings, estimate costs, understand construction systems and apply IRS tax code for incentives/deductions related to EPAct standards.

4. Will you need to replace your current accountant?
No. An EPAct study does not replace your accountant. The EPAct study simply provides your accountant with the information necessary to calculate deductions for depreciation and prepare your tax return. And, we work closely with your accountant every step of the way.

5. What happens if the IRS challenges the asset classifications resulting from the study?
In the event of an IRS review or audit, we will defend our results. We will be present at any review / hearing to answer questions. This is done at no additional cost to the building owner and/or his/her CPA. We have a proven track record with the IRS. 

6. Should my accounting department treat the cost of the upgrade as a capital expenditure to qualify for the tax deduction?  What is the difference between a routine expense and a capital expense (investment)? 
Yes.  The tax deduction is, essentially, an accelerated depreciation of a capital asset investment.  The asset must be shown on the books for the increased depreciation to be taken in the first year.  An ordinary expense shows up in the   books as an expense in the same year in which is was incurred.  Expenses reduce the income reported in the year they occur.  A capital investment adds to the net value of the assets shown on the company books but only the amount depreciated  that year reduces taxable income.  For example, if you buy an automobile for $28,000 and depreciate is (straight line) for 7 years, it shows up as a deduction of $4,000 each year for seven years. 

7. Do lighting upgrades for outdoor spaces such as parking lots qualify for the tax deduction?
No.  The tax deduction is only for the interior of buildings, not for outdoor lighting.  An indoor parking garage would qualify.

8. Can a tenant benefit from a EPAct study?
Yes. If you have paid for leasehold improvements and are currently depreciating them, EPAct may create tax benefits for you similar to those it offers for property owners.