WASHINGTON (Army News Service, Jan. 19, 2011) -- The assistant secretary of the Army for Installations, Energy and Environment has signed a policy that will enable and help civilian Army contractors in validating and obtaining tax deductions.
Katherine Hammack signed the Army's "Building Energy Efficiency" tax-deduction policy Dec. 17. The policy will assist Army contractors in validating and obtaining tax deductions for the costs of installing certain energy-efficient systems in Army buildings.
The tax deductions were authorized in Section 179D, which was part of the 2005 Energy Policy Act. The tax deductions for contractors are up to $1.80 per square foot. Building envelope, heating, ventilation, and air conditioning, or HVAC, and hot water systems, and lighting can qualify for one-third of the deduction ($.60 per square foot). Most buildings qualify for one of the three portions of the deduction.
"The Army is exploring ways to achieve its energy security and sustainability goals by pursuing energy efficiency and cost savings at our installations," said Hammack. "This is an incentive for Army contractors to focus their efforts on energy efficiency."
The Army is committed to assigning the deduction to qualified contractors who are supporting the Army's energy-efficiency goals. The Army seeks to derive greatest value from building energy efficiencies developed and implemented by its contractors.
The Army encourages its installation and industry partners to implement cutting-edge technologies and novel approaches.
The U.S. Army Installation Management Command is developing guidance and training to support the tax-deduction initiative. Subject-matter experts will be discussing specifics and answering questions during an Energy Forum at the Association of Defense Communities' Winter Conference in San Antonio, Feb. 16. The forum is expected to begin at 1:30 p.m. at the Grand Hyatt Hotel on the River Walk.
Army contractors are encouraged to pursue the tax deduction and work with their respective Contract Officer Representatives. The ASA IE&E policy can be viewed at www.asaie.army.mil . The Internal Revenue Service Bulletin: 2008-14 can be viewed at http://www.irs.gov/irb/2008-14_IRB/ar12.html.
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