Remodels

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Hi, can an addition to a building receive the tax deduction independent of
the older existing building?

Jim Olson

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Yes it can. Depending on which deduction you are trying to achieve, the rules for modeling say you must include the base system type per ASHRAE Appendix G for the whole building area.
A 40,000 sqft renovation of a 200,000 sqft building can only achieve a deduction for 40,000 sqft, and if going after full deduct or systems deduct it must be compared to the ASHRAE baseline system type for a 200,000 sqft space.
If dealing with DES or CEP the rules change again.

Also, very important, the other systems of the building must comply with the mandatory provisions of ASHRAE 90.1 2001. If the 40,000 sqft is a net-zero energy consumer, but the rest of the building does not comply with the mandatory provisions of ASHRAE 90.1 2001 then the building can't qualify.

Joe Fleming
E.I., LEED AP BD+C, BEMP

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