Some of the pork added to the $700 billion Wall Street bailout appears to be organic. The 2008 financial stimulus package extends the tax deduction for Energy Efficient Commercial Buildings for five years (until 2013).

Building owners may claim as much as $1.80 per square foot and both new and existing buildings may apply for the deduction. Investments in greater efficiency include interior lighting systems, HVAC, ventilation and hot water systems, building envelope improvements (such as high efficiency doors and windows, green roofs, caulking/weather stripping, high R-value insulation, etc.) that effectively reduce the building's total energy power cost by 50% or greater when compared to EPA building standards qualify for the deduction.

For commercial real estate owners to claim the deduction, the post-investment energy savings must be measured using software approved by the IRS and commercial owners/operators must obtain written certification through a third party professional company. Records regarding the investments and calculation of the deduction must be maintained. Limited deductions of 60 cents per square foot are also available for energy-saving upgrades that would be considered reasonable towards a reduction of 50% in energy savings upon further energy saving investments being made later on (i.e. reward for partial investments made now).

Senator Dianne Feinstein was quoted as saying, “Congress today approved, and the President has now signed into law, a measure that will help keep America’s emerging wind, solar and geothermal industries in business. This is a huge victory, and the most significant legislation approved by Congress this year to help address the climate crisis. Today marks a major milestone in America’s much-needed shift towards energy efficiency and renewable energy. And I’m very proud to have worked with my colleague Senator Olympia Snowe on this bipartisan legislation.”

The Extend Act (S.822) provides approximately $1.8 billion in incentives for energy efficient commercial buildings and renews critical tax credits for existing residential homes to make upgrades such as insulation and energy efficient air conditioners. The energy efficient new homes tax credit is up to $2000. The Act also extends the credit for residential solar investments for eight years to 2016 and eliminates the $2000 credit cap for solar electric investments.

Renewable Production Tax credits for wind production have been extended for one year and geothermal and biomass facilities have received two year credit extensions.

Solar energy and qualified fuel cell property investment tax credits of 30% are extended for eight years through 2016.

The costs associated with the extensions of these renewable energy and energy efficiency tax provisions are offset 100% by a repeal of a significant oil and gas subsidy.