Part III - Administrative, Procedural, and Miscellaneous
Deduction for Energy Efficient Commercial Buildings
Notice 2006-52
SECTION 1. PURPOSE
This notice sets forth interim guidance, pending the issuance of regulations,
relating to the deduction for energy efficient commercial buildings under § 179D of the
Internal Revenue Code. Specifically, this notice sets forth a process that allows a
taxpayer who owns, or is a lessee of, a commercial building and installs property as part
of the commercial building’s interior lighting systems, heating, cooling, ventilation, and
hot water systems, or building envelope to obtain a certification that the property
satisfies the energy efficiency requirements of § 179D(c)(1) and (d). This notice also
provides for a public list of software programs that must be used in calculating energy
and power consumption for purposes of § 179D. The Internal Revenue Service and the
Treasury Department expect that the rules set forth in this notice will be incorporated in
regulations.
SECTION 2. BACKGROUND
.01 In General. Section 1331 of the Energy Policy Act of 2005, Pub. L. No. 109-
58, 119 Stat. 594 (2005), enacted § 179D of the Code, which provides a deduction with
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respect to energy efficient commercial buildings. Section 179D(a) allows a deduction to
a taxpayer for part or all of the cost of energy efficient commercial building property that
the taxpayer places in service after December 31, 2005, and before January 1, 2008.
(See section 2.02 of this notice.) Sections 179D(d)(1) and 179D(f) allow a deduction to
a taxpayer for part or all of the cost of certain partially qualifying commercial building
property that the taxpayer places in service after December 31, 2005, and before
January 1, 2008. (See sections 2.03, 2.04, and 2.05 of this notice.) For purposes of
this notice partially qualifying commercial building property is property that would be
energy efficient commercial building property but for the failure to achieve the 50