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Epact Tax Benefit

Ultimate Rebate

Federal Grant

The Energy Policy Act of 2005 (EPAct 2005)

Tax incentives available under EPAct 2005 are a proven way to reduce the cost of energy efficiency improvements for a building.

EPAct 2005 provides an accelerated tax deduction of up to $1.80 per square foot for building investments that achieve specified energy cost reductions beyond ASHRAE 90.1-2001 ( ) building energy code standards. The maximum combined $1.80 per square foot tax deduction is comprised of deductions of up to 60 cents per square foot for three types of building systems: lighting, including lighting controls, HVAC, and the building envelope, which includes roof, walls, windows, doors and floor/foundation.


A tax deduction of 30 cents up to a maximum 60 cents per square foot for lighting is available with the wattage reductions between 25% to 40% from ASHRAE 90.1-2001 levels. To document the lighting electricity reduction and meet the EPAct requirements, the lighting project must be accompanied by detailed financial worksheets to demonstrate that the project meets the EPAct watts-per-square-foot thresholds and meets seven other procedural requirements.

EPAct 2005 was set to expire before Jan. 1, 2009. The Emergency Economic Stabilization Act of 2008 (commonly called the Rescue Package) signed by President Bush on Oct. 3 extended the deductions through Dec. 31, 2013. Over the past three years, most tax deductions under EPAct have been for lighting projects and when combined with utility rebates have contributed to enhanced financial return metrics.

  • Outperform the ASHRAE/IESNA Standard 90.1-2001 lighting requirements by 25-40% . Eligible tax deduction per sq.ft will be between $0.30-$0.60.
  • Warehouses must outperform the ASHRAE/IESNA Standard 90.1-2001 lighting requirements by 50% to qualify for the full $0.60/sq.ft deduction.
  • All control requirements in the Standard 90.1-2001 must be met, automatic shutoff for buildings greater than 5,000 sq.ft and bi-level switching must be installed
  • All existing building codes and product regulations must be met

  • IESNA Lighting Handbook, 9th Edition minimum requirements for calculated lighting levels must be me

  • This tax deduction is generally given to the individual/organization that makes the investment (typically the owner). However, for government buildings, the tax deduction may be taken by the designer

Utility Rebate

Over its 20 year existence,

MJSE has developed strong relationships with utilities across the country. MJSE has been selected to be a participant in numerous utility marketing programs to promote energy efficiency initiatives with commercial customers. These programs are designed to utilize rebates to enhance the financial proposition and thus provide added impetus to undertake energy efficiency projects. As Federal and State mandates to reduce energy consumption have become more prevalent, utility rebate programs have become more generous and widespread. MJSE keeps abreast of the utility rebate landscape throughout the country and therefore is able to proactively inform its clients as rebate programs change. This ensures that MJSE's clients receive the maximum rebates and are able to secure them as the pool of available rebate funds is finite.

Utility rebates have become a pivotal part of the energy efficiency project decision process. As previously indicated, lighting upgrade projects and other energy efficiency measures are frequently subsidized to varying degrees by virtually all utility companies and can often reduce the final cost of a project by 30% to 100%.

MJSE handles all of the calculations, paperwork and approvals, inclusive of utility pre and post inspections as the rebate process can be cumbersome and complicated. MJSE's engineered designs ensure that optimum energy saving solutions are realized with maximum rebates achieved.

MJSE is so confident in its ability to accurately calculate and secure rebates for a project that it will accept the assignment of utility rebates in lieu of payment from the client for that amount of the project. Over the years, MJSE has secured millions of dollars in rebates and incentives for its clients.