Energy Conservation Projects Are In Demand

The latest issue of Builders Exchange Magazine published an article by Craig Miller titled, "Energy conservation projects are in demand." As Craig states in the opening sentence of his article:

"With so much current and future focus on sustainability, and with all of the unknowns in the rising cost of electric and natural gas utilities, many commercial building owners are designing high efficiency into new buildings or retrofitting their existing buildings."

Key issues in the decision making process are the availability of funding and its budget impact. For example, if a company wants to retrofit one of its existing buildings with more energy efficient lighting and upgrade its HVAC using renewable energy technologies, financing would be a good option for making these capital expenditures, particularly if the savings to the company's operating budget will be equal or greater than the annual debt service payments or capital lease or bond payments. In that scenario, the project has become self-funding.

In addition, the Energy Policy Act of 2005 provides for income tax deductions for investments in energy efficient commercial building property.

For more information, read Craig's article at BXMagazine.com.

Craig Miller, CPA, is client manager at Duffy+Duffy Cost Segregation Services in Westlake, Ohio.

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