Conservation Projects
To qualify for a tax credit, conservation retrofit projects must be 10 percent more efficient than existing installation. You can also qualify for a tax credit for installing energy-efficiency measures during construction. Measures must reduce energy use by at least 10 percent compared to a similar building that meets the minimum requirements of the state energy code.
The tax credit is 35 percent of the incremental (or addition) costs of making the project exceed energy code or standard industry practice. New construction projects must have a simple payback of 1 to 15 years.
Lighting retrofit projects must be 25 percent more efficient than existing lighting. Project owners must report how lighting fixtures, lamps and thermostats replaced in a lighting project (and thereafter) will be recycled. (See Lighting Retrofits, PCBs and Mercury.)
Lighting for new construction projects must be 10 percent more efficient than energy code or standard industry practice.
Lighting projects must have a simple payback of 1 to 15 years.
