"Green" Tax Breaks for Building Owners

The push to rebuild and re-energize our economy with the help of the stimulus package has made Conklin's "green" roofing systems more attractive than ever.  "Any of our highly reflective roofing systems that carry the Energy Star rating are considered 'green' products ... and qualify for tax deductions," says Conklin Senior Product Specialist Lee Wegener.

What Improvements Qualify?

Commercial building* owners can take deductions by reducing the costs of three energy-using systems: building envelope, lighting and heating/cooling.  If all three systems are improved, the building owner can take a total deduction of $1.80 per square foot.  If any single system is improved, the owner can deduct one third of that amount. (see chart below.)
Conklin's white, reflective roof coatings, SPF foam roofing and single-ply membrane systems affect the building envelope and, when applied, qualify the building owner for a $.60 per square foot tax deduction.  Improvements must produce and energy savings of 50 percent or more of the projected annual energy costs for the building.**
Lee Wegener, Conklin's Senior Product Specialist on Flat Roof
     Lee Wegener, Conklin Senior Product Specialist

Maximum Allowable Tax and Energy Savings for Energy -
Efficient Building Improvements

Eligible Systems

  1. Building Envelope
  2. HVAC/Water Heating
  3. Lighting

Qualification

Reduces Overall Energy Costs

Tax Deduction

Off Cost of System

One of of Three

Two out of Three

Three out of Three

16 - 2/3 percent

33 - 1/3 percent

50 percent

$.60 per square foot

$1.20 per square foot

$1.80 per square foot

*Applies to new and renovated offices, retail stores, warehouses, apartment buildings and publically-owned buildings "placed in service" between January 1, 2006 through December 31, 2013.

**As compared to a base building defined by the industry standard ASHRAWE/IESNA 90.2001.  Special software is required to calculate energy savings.  Click on the following link for a list of DOE-certified, IRS-approved software: http://www1.eere.energy.gov/buildings/qualified_software.html