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In an interview, SourceCorp marketing director Doug Morrell talked about the HR 1424 law and how it can help you save money in these tough economic times. Morrell said the Commercial Buildings Tax Deduction (CBTD) gives owners a tax benefit of as much as $1.80 per square foot for qualifying energy-efficiency improvements, effectively lowering the investment required to build green or update or replace outmoded systems. The return -- in the forms of utility-bill savings and accelerated tax deductions -- creates a genuine financial incentive at a time when building owners could really use one. The deduction is allowed for property placed in service after Dec 31, 2005, and prior to Jan 2, 2014.

On Oct. 3, 2008, former President Bush signed HR 1424 into law and extended the Energy Efficient Commercial Buildings Tax Deduction as part of the Emergency Economic Stabilization Act of 2008. If you have retrofitted your building to be more energy efficient, you may be eligible for a deduction for part or all of the costs associated with an installation or retrofit. This opportunity allows for the potential immediate expensing of costs that would otherwise be capitalized and recovered through depreciation over 27.5 or 39 years.

Doug Morrell, marketing director at Ft. Worth, TX-based SourceCorp, explains the law and how it can help you save money in these tough economic times.

Buildings: How will HR 1424 help commercial building owners?

Morrell: The Commercial Buildings Tax Deduction (CBTD) gives owners a tax benefit of as much as $1 .80 per square foot for qualifying energy-efficiency improvements, effectively lowering the investment required to build green or update or replace outmoded systems. The return - in the forms of utility-bill savings and accelerated tax deductions - creates a genuine financial incentive at a time when building owners could really use one.

Buildings: What sorts of energy-efficient retrofits will qualify buildings for this deduction?

Morrell: The Energy Policy Act of 2005 includes a tax deduction for energyefficient building systems designed for 50-percent energy cost savings relative to a building designed within the scope of ASHRAE 90.1-2001 - Energy Standard for Buildings Except Low-Rise Residential Buildings. The deduction is limited to $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot-water systems, and building-envelope systems.

Buildings: Is it too late to implement these retrofits in order to seek the deduction? Morrell: No. The deduction is allowed for property placed in service after Dec. 31, 2005, and prior to Jan. 2, 2014.

Buildings: Where can our readers go for more information?

Morrell: Additional information on tax incentives and other cost-savings measures can be found at www.irs. gov/pub/irs-drop/n-06-52.pdf, www. energy.gov/additionaltaxbreaks.htm, and www1.eere.energy.gov/buildings/ printable_versions/qualified software.html.