Energy Savings Modeling and Inspection Guidelines for Commercial Building Federal Tax Deductions for Buildings in 2016 and Later

This document provides guidance for modeling and inspecting energy-efficient property in commercial buildings for certification of the energy and power cost savings related to Section 179D of the Internal Revenue Code (IRC) enacted in Section 1331 of the 2005 Energy Policy Act (EPAct) of 2005, noted in Internal Revenue Service (IRS) Notices 2006-52 (IRS 2006), 2008-40 (IRS 2008) and 2012-26 (IRS 2012), and updated by the Protecting Americans from Tax Hikes (PATH) Act of 2015. Specifically, Section 179D provides federal tax deductions for energy-efficient property related to a commercial building's envelope; interior lighting; heating, ventilating, and air conditioning (HVAC); and service hot water (SHW) systems. This document applies to buildings placed in service on or after January 1, 2016.