Good Energy is pleased to announce its program for achieving maximum benefit from certain provisions of the Federal Energy Policy Act of 2005.

In short, there are new immediately-available tax deductions for commercial buildings.

Generally, any large scale facility improvement must be accounted for as a capital improvement. Pursuant to GAAP, capital improvements must be depreciated over a long period of time. The annual depreciation can be booked against income, reducing the amount of income tax a business must pay. If the business is an LLC or other pass-through entity, then the tax liability, (or reduction thereof), gets passed through to the membership interest owners of the LLC. The federal tax deductions allowed under the Federal Energy Policy Act of 2005 make it possible to apply the tax benefits of expensing an energy efficiency upgrade in the year the upgrade is completed, rather than over a long period of time. Following are some key considerations:

The Energy Tax Incentives Act of 2005

  • Immediate Deductions for Energy Efficient Capital Improvements
  • Applies to Commercial Buildings (includes Rental properties ?4 stories and Tenant owned lease-hold improvements)
  • Focuses on Lighting, HVAC and Building Envelope
  • Available for 2006 & 2007 Installations
  • Capped at lesser of investment cost or:
    • $1.80/sq.ft. Whole Building
    • $0.60/sq.ft. Individual Systems (Lighting, HVAC and Building Envelope)

What We Do

  • Help commercial building owners and tenants plan and implement energy efficiency upgrades that maximize ROI and impact of the Energy Tax Incentives
  • Help commercial building owners and tenants obtain federal income tax credits for building energy reductions
  • Act as a bridge between facilities/energy departments and tax department
  • In partnership with Energy Tax Savers, Inc., we offer a comprehensive tax package to comply with federal tax filing requirements

What You Get - Comprehensive Tax Package

  • Energy Reduction Plan (ETSI Software)
  • Building Energy Model (ETSI Reviewed)
  • Tax Deduction Calculation (ETSI Software)
  • Owners Manual, highlighting energy saving features (ETSI Reviewed)
  • Post-Implementation Certification (ETSI Reviewed)

Potential Tax Savings for a 400,000 S.F. Building:

Immediate Tax Deduction

Whole Building: $720,000

Individual System Approach
Lighting: $240,000
HVAC: $240,000
Building Envelope: $240,000

About Good Energy
Good Energy launched a business to bring a simple concept to the marketplace... savings via lower electricity costs and superior efficiency lighting solutions. A smarter way to buy power and to use power. With ever changing technologies and product offerings Good Energy has provided new efficiency applications to the market and has pioneered a community centric buying approach that has achieved hundreds of millions of dollars in savings to the residential and commercial segment.

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