Energy Codes, Rebates & Incentives

EPAct Tax Incentives

The EPAct energy policy offers tax incentives for buildings that use eco-friendly materials and design. Lutron light controls provide significant energy savings that help building owners reap the EPAct rewards of going green.

EPAct Overview

The Energy Policy Act of 2005 (EPAct) is the biggest overhaul of U.S. national energy policy since 1992. The policy is expected to reduce the national energy demand by 312 megawatts. Carbon emissions will also be reduced by 10 million metric tons. The EPAct hopes to achieve these goals through tax incentives for energy efficient building systems. According to the National Electrical Manufacturers Association (NEMA), EPAct will motivate building owners to purchase an estimated $500M in additional lighting systems and products.


To qualify for EPAct incentives, projects must be completed on January 1, 2006 – December 31, 2013. By using Lutron light controls, buildings completed within this timeframe can qualify for EPAct deductions in 3 ways:

  • Complete Deduction: deduct up to $1.80/ft for modeled total-building energy cost reduction of 50%, when upgrading lighting, HVAC, and building envelope.
  • Partial Deduction: deduct up to 16 2/3% of the modeled building energy cost reduction for upgrading lighting, HVAC, or building envelope.
  • lnterim Lighting Rules: deduct $0.30 – $0.60/ft for 25-40% reduction in ASHRAE 90.1 2001 LPD (Lighting Power Density or W/ft2). This is the deduction is often used by EcoSystem customers. This deduction is also the estimated value derived from the EcoSystem ROI calculator.
Please consult your tax advisor to determine the specific treatment for your situation.


Eligible Buildings

  • Buildings in the United States that are within the scope of ASHRAE 90.1-2001 Energy Standard for Buildings (except residential buildings that are three stories or less)
  • Publicly owned buildings such as schools and rental housing (four stories or higher) -- ln this situation the deduction is available to the designer
  • Applies to retrofit or new construction


Ineligible Buildings

  • Buildings owned by non-profit, non-government organizations, such as churches
  • Low-rise residential buildings (three stories or less)