TRACE™ 700 Can Help Commercial Property Owners Earn Significant Tax Deductions

Trane’s TRACE 700 software was the first and is currently one of only three programs accepted by the U.S. Internal Revenue Service (IRS) for energy savings certification. The IRS recently announced that commercial building owners or leaseholders can earn a significant tax deduction by making their building more energy efficient.
TRACE™ 700 Can Help Commercial Property Owners Earn Significant Tax DeductionsThe commercial building deduction, enacted in the Energy Policy Act of 2005, allows taxpayers to deduct the cost of energy efficient property installed in commercial buildings. The amount deducted may be as much as $1.80 per square foot of building floor area in buildings that achieve a 50 percent energy savings target.

The IRS also specifies that buildings below the 50 percent threshold may still qualify for a deduction of up to 60 cents per square foot of floor space if they meet a 16 percent energy savings target. Read more information about the U.S. Department of Energy’s Building Technologies Program and IRS energy efficiency deductions.

Energy savings must be certified through the use of computer modeling. Currently, only TRACE 700 and one other software program meet IRS energy savings certification requirements.