Draft as of
08/11/2005
5
I.R.S. SPECIFICATIONS
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SCHEDULE A (FORM 8836), PAGE 1 OF 2
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INK: BLACK
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SCHEDULE A
(Form 8836)
Department of the Treasury
Internal Revenue Service
Third Party Affidavit
䊳
See instructions on back.
OMB No. 1545-0074
Taxpayer Information (to be completed by taxpayer)
Your first name and initial
Last name
Your social security number
If you are filing a joint return for 2005, spouse’s first name
and initial
Affidavit (to be completed by third party only)
1
Clergy
Community-based organization official
Employer
Health-care provider
Indian tribal official
Landlord or property manager
School official
Under penalties of perjury, I declare that I have examined this affidavit, and to the best of my knowledge and belief, it is true, correct, and complete.
Your name
(print or type)
䊳
Name of organization (if any)
䊳
City, town or post office, state, and ZIP code
For Privacy Act and Paperwork Reduction Act Notice, see Form 8836.
Cat. No. 37203P
Schedule A (Form 8836) 2005
Part I
Part II
Last name
Third Party
Sign Here
Date
䊳
䊳
Title (if any)
䊳
Social service agency or other
government official
Childcare provider
Address (number and street)
Note. The IRS may contact you to verify this affidavit.
䊳
Esta forma está disponible en español. Por favor, llame al 1-800-829-6088.
Attorney
Court or placement
agency official
Law enforcement officer
(
)
Your daytime phone number
20
05
You must check one box, and only one box, below that best describes your relationship to the taxpayer. See the instructions
to find out if you are eligible to complete Part II.
2
Child’s name. Enter the name of the child who lived with the taxpayer.
Child 1 (first and last name)
䊳
Note. If this affidavit covers only one child, check here
䊳
and do not enter a name on the line for Child 2 below.
Child 2 (first and last name)
䊳
3
Address. The child (or children) lived with a taxpayer (or both taxpayers) named in Part I at the following address. (If more
than one address applies, see the instructions.)
Address (number and street)
City, town or post office, state, and ZIP code
4
Start date. This affidavit covers the time period in 2005 during which the child (or children) lived with a taxpayer (or both
taxpayers) named in Part I. (If more than one period of time applies, see the instructions.)
Check the box that applies.
(1)
(2)
The child (or children) began living with the taxpayer before 2005.
The child (or children) began living with the taxpayer on
/
/2005.
5
End date. Check the box that applies.
(1)
(2)
The child (or children) has lived with the taxpayer at the above address since the start date.
The child (or children) lived with the taxpayer at the above address until
/
/2005.
Based on my records or personal knowledge, I certify that the child (or children) named in Part II lived with the taxpayer(s) named
in Part I at the address shown above during the period of time shown.
(month)
(day)
(month)
(day)
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Draft as of
08/11/2005
5
I.R.S. SPECIFICATIONS
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SCHEDULE A (FORM 8836), PAGE 2 OF 2
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INK: BLACK
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Schedule A (Form 8836) (2005)
Page
2
Instructions for Taxpayer
Purpose of Form
You may ask a third party to complete the affidavit on
Schedule A (Form 8836) to show that you and your
qualifying child lived together in the United States for
part or all of 2005. Attach Schedule A to Form 8836,
Qualifying Children Residency Statement. See Form
8836 for more details.
Who Is a Third Party?
A third party is anyone whose relationship to you or
your child is listed on page 1 of Schedule A and who
has records that show, or who personally knows, that
you and your qualifying child lived together for part or
all of 2005. A third party does not include you, your
spouse, your dependent, your qualifying child (for the
earned income credit), or a parent of that qualifying
child.
How Many Schedules A Do You Need?
You may use as many Schedules A as you need (in
combination with copies of records and letters on
official letterhead), as long as they show, when taken
together, that your child lived with you for more than
half of 2005.
Do not use Schedule A if the records or letters you
are submitting with Form 8836 already show your child
lived with you for more than half the year in 2005. Do
not attach Schedules A for children not listed on Form
8836. If we decide that one or both of the children you
list on this schedule is not a qualifying child, we will
contact you and give you the opportunity to send us
information about another child. See Form 8836 for
more details.
What Do You Need To Tell the Third Party?
Before giving Schedule A to the third party, complete
your name, and your spouse’s name (if you are filing a
joint return for 2005) at the top of the schedule. You
must also enter your social security number, but you
can wait until after the third party completes the
affidavit.
Ask the third party to completely fill in all applicable
entry spaces on the affidavit and sign and date it. If
you have more than two children, and the third party
has information relating to more than two of your
children, be sure to tell the third party the names of the
two qualifying children you are claiming on
Form 8836.
If the third party does not complete all applicable
information, the affidavit may not be accepted.
Instructions for Third Party
The taxpayer has given you this affidavit to verify the
period during 2005 that the taxpayer and one or two of
his or her children lived together in the United States. If
you fill out this affidavit, then you must complete all
applicable information on the affidavit based on your
records or personal knowledge and sign it under
penalties of perjury. After completing and signing the
affidavit, return it to the taxpayer. Do not send it to the
IRS. Criminal penalties may be imposed for knowingly
making a false statement.
Who Is Eligible To Complete Part II?
You are eligible to complete Part II only if your
relationship to the taxpayer is listed below. You may
not complete the affidavit if you are the taxpayer’s
spouse, dependent, or qualifying child (for the earned
income credit), or you are a parent of that qualifying
child.
● Childcare provider if you are at least age 18 (such as
a babysitter or daycare provider).
● Member of the clergy (including a minister, priest,
rabbi, or imam).
More Than One Address or Period
If the taxpayer and child (or children) lived together at
more than one address or during two or more separate
periods during 2005, you must either:
● Complete a separate Schedule A for each address
and time period, or
● Enter “see attached” on line 3 and to the right of
lines 4 and 5 and attach a separate statement (which
can be typed or written on a plain piece of paper)
listing the taxpayer’s name and addresses and time
periods that the taxpayer and child (or children) lived at
each address. You must also sign the attached
statement.
● Community-based organization official (including an
official from the YMCA, YWCA, Boy Scouts, Girl
Scouts, Boys and Girls Clubs, 4-H, Little League,
Police Athletic League, immigrant advocacy groups,
neighborhood associations, homeowners and
condominium associations, and other nonprofit
groups).
● Employer (such as a personnel official, supervisor, or
work leader).
● Health-care provider (including a doctor, nurse
practitioner, or clinic official).
● Indian tribal official.
● Landlord or property manager (including a building
superintendent, public housing official, or rental agent).
● School official (including a teacher, principal, or
administrative assistant). A school includes Head Start,
pre-K programs, and before or after school care
provided by the school.
● Social service agency or other government official
(including a social worker, case worker at a public
assistance office, or operator of a homeless shelter).
How To Get Help
If you need assistance completing this schedule, call
1-800-829-6088. Assistance is available Monday
through Friday from 8:00 a.m. to 8:00 p.m. local
time.
● Attorney who handled the taxpayer’s divorce or child
custody case.
● Official of the court or agency that issued a decision
or order involving the taxpayer’s divorce or custody,
support, or placement of the taxpayer’s child.
● Law enforcement officer (such as a police officer or
parole officer).
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, relat-
ing 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 tax-
payer who owns, or is a lessee of, a com-
mercial
building and installs property as
part of the commercial building’s interior
lighting systems,
heating,
cooling,
venti-
lation, and hot water systems, or building
envelope to obtain a certification that the
property satisfies the energy efficiency re-
quirements of § 179D(c)(1) and (d).
This
notice also provides for a public list of soft-
ware programs that must be used in calcu-
lating energy and power consumption for
purposes of § 179D. The Internal Revenue
Service and the Treasury Department ex-
pect 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 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 com-
mercial 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 tax-
payer
for
part
or
all
of
the cost
of
cer-
tain partially qualifying commercial build-
ing property that the taxpayer places in ser-
vice 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-percent reduction in energy and power
costs required under section 2.02(1)(c) of
this notice.
.02 Energy Efficient Commercial Build-
ing Property.
(1) In General.
Energy efficient com-
mercial
building property is depreciable
property that satisfies each of the follow-
ing conditions:
(a) The property is installed on or in
any building that is located in the United
States and is within the scope of Standard
90.1–2001.
(See section 5.02 of this no-
tice for the description of buildings within
the scope of Standard 90.1–2001 and sec-
tion 5.06 of this notice for the complete de-
scription of Standard 90.1–2001.)
(b) The property is installed as part of—
(i) the interior lighting systems,
(ii)
the heating,
cooling,
ventilation,
and hot water systems, or
(iii) the building envelope.
(c) It is certified that the interior light-
ing systems, heating, cooling, ventilation,
and hot
water systems,
and building en-
velope that
have been incorporated into
the building,
or
that
the taxpayer
plans
to incorporate
into the
building subse-
quent to the installation of such property,
will
reduce the total
annual
energy and
power
costs
with respect
to combined
usage of the building’s heating,
cooling,
ventilation,
hot
water,
and interior light-
ing systems
by 50 percent
or
more as
compared to a Reference Building that
meets the minimum requirements of Stan-
dard 90.1–2001.
The required 50-percent
reduction must
be
accomplished solely
through energy and power cost reductions
for the heating,
cooling,
ventilation,
hot
water,
and interior lighting systems.
Re-
ductions in any other
energy uses,
such
as
receptacles,
process
loads,
refrigera-
tion, cooking, and elevators, are not taken
into account
in determining whether
the
50-percent reduction is achieved.
(2) Maximum Amount of Deduction.
(a) In General.
The deduction for the
cost of energy efficient commercial build-
ing property installed on or in a building
shall not exceed the excess (if any) of—
(i) the product of $1.80 and the square
footage of the building, over
(ii) the aggregate amount of the § 179D
deductions
allowed with respect
to the
building for all prior taxable years.
(b) Application to Multiple Taxpayers.
If two or more taxpayers install energy ef-
ficient commercial building property on or
in the same building, the aggregate amount
of the § 179D deductions allowed to all
such taxpayers with respect to the building
shall
not
exceed the amount
determined
under section 2.02(2)(a) of this notice.
.03 Partially Qualifying Property:
En-
ergy Efficient Lighting Property.
(1) In General.
Energy efficient light-
ing property is partially qualifying prop-
erty,
within the meaning of section 2.01
of this notice,
that is subject to either the
permanent
rule in section 2.03(1)(a)
of
this notice or the interim rule in section
2.03(1)(b) of this notice.
(a) Permanent Rule.
Partially qualify-
ing property is subject
to the permanent
rule if it is installed as part of the interior
lighting systems of a building and it is cer-
tified that the interior lighting systems that
have been incorporated into the building,
or that
the taxpayer plans to incorporate
into the building subsequent
to the in-
stallation of
such property,
will
reduce
the total
annual
energy and power
costs
with respect
to combined usage of
the
building’s
heating,
cooling,
ventilation,
hot
water,
and interior
lighting systems
by 16
2
/
3
percent
or more as compared to
a Reference Building that meets the mini-
mum requirements of Standard 90.1–2001.
The required 16
2
/
3
-percent reduction must
be accomplished solely through energy
and power
cost
reductions for
the heat-
ing,
cooling,
ventilation,
hot
water,
and
interior lighting systems.
Reductions in
any other
energy uses,
such as recepta-
cles, process loads, refrigeration, cooking,
and elevators,
are not
taken into account
in determining whether the 16
2
/
3
-percent
reduction is achieved.
(b) Interim Rule.
Partially qualifying
property,
within the meaning of
section
2.01 of this notice, is subject to the interim
rule if it is not subject to the permanent rule
in section 2.03(1)(a) of this notice, if it is
installed as part of the interior lighting sys-
tems of a building before the date on which
final
regulations under section 179D are
published in the Federal Register, and it is
certified that the interior lighting systems
that have been incorporated into the build-
June 26, 2006
1175
2006–26 I.R.B.
ing, or that the taxpayer plans to incorpo-
rate into the building,—
(i)
Achieve
a
reduction
in
lighting
power density of at
least
25 percent
(50
percent in the case of a warehouse) of the
minimum requirements
in Table 9.3.1.1
or Table 9.3.1.2 (not including additional
interior
lighting
power
allowances)
of
Standard 90.1–2001;
(ii)
Have controls and circuiting that
comply
fully
with
the
mandatory
and
prescriptive
requirements
of
Standard
90.1–2001;
(iii)
Include
provision
for
bi-level
switching in all occupancies except hotel
and motel
guest
rooms,
store rooms,
re-
strooms, and public lobbies; and
(iv)
Meet
the minimum requirements
for calculated lighting levels as set
forth
in the IESNA Lighting Handbook,
Per-
formance and Application, Ninth Edition,
2000.
(2) Maximum Amount of Deduction.
(a) Property subject
to the permanent
rule.
(i) In General.
If the energy efficient
lighting property installed on or in a build-
ing is subject to the permanent rule in sec-
tion 2.03(1)(a) of this notice, the deduction
for the cost of the property shall not exceed
the excess (if any) of—
(A) the product of $0.60 and the square
footage of the building, over
(B) the aggregate amount of the § 179D
deductions allowed with respect to energy
efficient lighting property installed on or in
the building for all prior taxable years.
(ii) Application to Multiple Taxpayers.
If two or more taxpayers install energy ef-
ficient lighting property on or in the same
building and the property is subject to the
permanent rule in section 2.03(1)(a) of this
notice, the aggregate amount of the § 179D
deductions allowed to all
such taxpayers
with respect to the building shall not ex-
ceed the amount determined under section
2.03(2)(a)(i) of this notice.
(b) Property subject to the interim rule.
(i) In General.
If the energy efficient
lighting property installed on or in a build-
ing is subject to the interim rule in section
2.03(1)(b) of this notice, the deduction for
the cost of the property is equal to the ap-
plicable percentage of the deduction that
would be allowed if the property were sub-
ject to the permanent rule.
In addition, the
deduction for the cost of the property shall
not exceed the excess (if any) of—
(A)
the applicable percentage of
the
product of $0.60 and the square footage of
the building, over
(B) the aggregate amount of the § 179D
deductions allowed with respect to energy
efficient lighting property installed on or in
the building for all prior taxable years.
(ii) Applicable percentage.
If the in-
terior
lighting systems
of
the
building
achieve a reduction in lighting power den-
sity of at least 40 percent,
the applicable
percentage for the building is 100 percent.
If the interior lighting systems of the build-
ing achieve a reduction in lighting power
density of less than 40 percent,
the appli-
cable percentage for the building is 100
percent reduced at a rate of 3
1
/
3
percentage
points per percentage point
by which 40
percent
exceeds the percentage reduction
in lighting power density.
For example,
if the interior lighting systems achieve a
reduction in lighting power density of 32.5
percent,
the applicable percentage is 75
percent (100 - (3
1
/
3
x (40 - 32.5))).
(iii) Application to Multiple Taxpayers.
If two or more taxpayers install energy ef-
ficient lighting property on or in the same
building and the property is subject to the
interim rule in section 2.03(1)(b) of this
notice, the aggregate amount of the § 179D
deductions allowed to all
such taxpayers
with respect to the building shall
not ex-
ceed the amount determined under section
2.03(2)(b)(i) of this notice.
.04 Partially Qualifying Property:
En-
ergy Efficient
Heating,
Cooling,
Ventila-
tion, and Hot Water Property.
(1) In General.
Energy efficient heat-
ing,
cooling,
ventilation,
and hot
water
property is partially qualifying property,
within the meaning of section 2.01 of this
notice, that satisfies both of the following
conditions:
(a) The property is installed as part of
the heating,
cooling,
ventilation,
and hot
water systems of a building; and
(b) It is certified that the heating, cool-
ing, ventilation, and hot water systems that
have been incorporated into the building,
or that
the taxpayer plans to incorporate
into the building subsequent
to the in-
stallation of
such property,
will
reduce
the total
annual
energy and power
costs
with respect
to combined usage of
the
building’s
heating,
cooling,
ventilation,
hot
water,
and interior
lighting systems
by 16
2
/
3
percent
or more as compared to
a Reference Building that meets the mini-
mum requirements of Standard 90.1–2001.
The required 16
2
/
3
-percent reduction must
be accomplished solely through energy
and power
cost
reductions for
the heat-
ing,
cooling,
ventilation,
and hot
water
systems.
Reductions in any other energy
uses,
such as receptacles,
process loads,
refrigeration,
cooking,
and elevators,
are
not
taken into account
in determining
whether
the
16
2
/
3
-percent
reduction
is
achieved.
(2) Maximum Amount of Deduction.
(a) In General.
The deduction for the
cost
of energy efficient
heating,
cooling,
ventilation,
and hot
water
property in-
stalled on or in a building shall not exceed
the excess (if any) of—
(i) the product of $0.60 and the square
footage of the building, over
(ii) the aggregate amount of the § 179D
deductions allowed with respect to energy
efficient heating, cooling, ventilation, and
hot
water property installed on or in the
building for all prior taxable years.
(b) Application to Multiple Taxpayers.
If two or more taxpayers install energy ef-
ficient
heating,
cooling,
ventilation,
and
hot water property on or in the same build-
ing,
the aggregate amount of the § 179D
deductions allowed to all
such taxpayers
with respect
to the building shall
not ex-
ceed the amount determined under section
2.04(2)(a) of this notice.
.05 Partially Qualifying Property:
En-
ergy Efficient Building Envelope Property.
(1) In General.
Energy efficient build-
ing envelope property is partially qualify-
ing property, within the meaning of section
2.01 of this notice, that satisfies both of the
following conditions:
(a) The property is installed as part of
the building envelope of a building; and
(b) It
is certified that
the building en-
velope
that
has
been incorporated into
the building,
or
that
the taxpayer
plans
to incorporate
into the
building subse-
quent to the installation of such property,
will
reduce the total
annual
energy and
power
costs
with respect
to combined
usage of the building’s heating,
cooling,
ventilation, hot water, and interior lighting
systems by 16
2
/
3
percent or more as com-
pared to a Reference Building that meets
the minimum requirements
of
Standard
90.1–2001.
The required 16
2
/
3
-percent
reduction must
be
accomplished solely
through energy and power cost reductions
for the heating,
cooling,
ventilation,
hot
2006–26 I.R.B.
1176
June 26, 2006
water,
and interior lighting systems.
Re-
ductions in any other
energy uses,
such
as
receptacles,
process
loads,
refrigera-
tion, cooking, and elevators, are not taken
into account
in determining whether
the
16
2
/
3
-percent reduction is achieved.
(2) Maximum Amount of Deduction.
(a) In General.
The deduction for the
cost of energy efficient building envelope
property installed on or in a building shall
not exceed the excess (if any) of—
(i) the product of $0.60 and the square
footage of the building, over
(ii) the aggregate amount of the § 179D
deductions allowed with respect to energy
efficient
building envelope property in-
stalled on or in the building for all
prior
taxable years.
(b) Application to Multiple Taxpayers.
If two or more taxpayers install energy ef-
ficient building envelope property on or in
the same building, the aggregate amount of
the § 179D deductions allowed to all such
taxpayers with respect to the building shall
not
exceed the amount
determined under
section 2.05(2)(a) of this notice.
SECTION 3.
METHOD OF
COMPUTATION
.01
In
General.
The
Performance
Rating Method (PRM)
must
be used to
compute the percentage reduction in the
total annual energy and power costs with
respect to combined usage of a building’s
heating,
cooling,
ventilation,
hot
water,
and
interior
lighting
systems
as
com-
pared to a Reference Building that meets
the minimum requirements
of
Standard
90.1–2001.
.02
Performance
Rating
Method
(PRM).
For
purposes of
this notice,
the
PRM includes
the
following
computa-
tions:
(1)
Reference
Building
Energy
and
Power Costs equal the sum of the energy
and power costs for the following compo-
nents of the Reference Building:
(a) Interior Lighting,
(b) Heating,
(c) Cooling,
(d) Ventilation, and
(e) Hot Water.
(2)
Proposed
Building
Energy
and
Power Costs equal the sum of the energy
and power costs for the same components
of the Proposed Building.
(3) Percentage Reduction in Energy and
Power Costs is determined by—
(a) Subtracting Proposed Building En-
ergy and Power
Costs
from Reference
Building Energy and Power Costs; and
(b) Expressing the difference as a per-
centage of Reference Building Energy and
Power Costs.
.03 Reference Building.
For purposes
of this notice,
the Reference Building is
a building that is located in the same cli-
mate zone as the taxpayer’s building and
is otherwise comparable to the taxpayer’s
building except
that
its interior
lighting
systems, heating, cooling, ventilation, and
hot
water
systems,
and building enve-
lope meet
the minimum requirements of
Standard 90.1–2001.
The energy perfor-
mance of the Reference Building shall be
determined by following the methods for
baseline building performance in the PRM
in Appendix G of Standard 90.1–2004.
In
calculating baseline building performance,
the Reference Building shall
use the fol-
lowing additional
requirements from the
2005 California Title 24 Nonresidential
Alternative
Calculation Method (ACM)
Approval Manual:
(1)
Number
of
occupants,
occupant
sensible and latent
heat
loads,
receptacle
loads,
and hot
water
loads
from ACM
Tables
N2–2 for
whole building values
and Table N2–3 for building area values
appropriate for mixed use buildings;
(2)
Occupancy,
HVAC,
fans,
infiltra-
tion,
hot
water,
lighting,
and equipment
schedules from ACM Tables N2–4 through
N2–9;
(3)
Infiltration
modeled
following
ACM Section 2.4.1.6;
(4) Luminaire power for interior light-
ing systems from the 2005 California Title
24 Nonresidential ACM Appendix NB or
from manufacturers data.
.04 Proposed Building.
(1) Energy Efficient Commercial Build-
ing Property.
In computing energy and
power
cost
savings for
purposes of
sec-
tion 2.02 (relating to energy efficient com-
mercial
building property),
the Proposed
Building is a building that contains the in-
terior lighting systems,
heating,
cooling,
ventilation,
and hot
water
systems,
and
building envelope that have been incorpo-
rated, or that the taxpayer plans to incorpo-
rate, into the taxpayer’s building but that is
otherwise identical to the Reference Build-
ing.
(2) Energy Efficient Lighting Property.
In computing energy and power cost sav-
ings for
purposes of
section 2.03 (relat-
ing to energy efficient lighting property),
the Proposed Building is a building that
contains the interior lighting systems that
have been incorporated (or
that
the tax-
payer plans to incorporate) into the tax-
payer’s building but that is otherwise iden-
tical to the Reference Building.
(3) Energy Efficient Heating,
Cooling,
Ventilation,
and Hot
Water Property.
In
computing energy and power cost savings
for
purposes of
section 2.04 (relating to
energy efficient heating,
cooling,
ventila-
tion, and hot water property), the Proposed
Building is a building that
contains the
heating,
cooling,
ventilation,
and hot wa-
ter systems that have been incorporated, or
that the taxpayer plans to incorporate, into
the taxpayer’s building but
that
is other-
wise identical to the Reference Building.
(4) Energy Efficient Building Envelope
Property.
In computing energy and power
cost
savings for purposes of section 2.05
(relating to energy efficient building enve-
lope property), the Proposed Building is a
building that
contains the building enve-
lope that has been incorporated, or that the
taxpayer plans to incorporate, into the tax-
payer’s building but that is otherwise iden-
tical to the Reference Building.
SECTION 4.
CERTIFICATION
Before a taxpayer may claim the § 179D
deduction with respect
to property in-
stalled on or
in a commercial
building,
the taxpayer
must
obtain a certification
with respect
to the property.
The certi-
fication must
be provided by a qualified
individual and satisfy the requirements of
§ 179D(c)(1).
A taxpayer is not required
to attach the certification to the return on
which the deduction is taken.
However,
§ 1.6001–1(a) of the Income Tax Regu-
lations
requires
that
taxpayers
maintain
such books and records as are sufficient to
establish the entitlement
to,
and amount
of, any deduction claimed by the taxpayer.
Accordingly, a taxpayer claiming a deduc-
tion under § 179D should retain the certifi-
cation as part of the taxpayer’s records for
purposes of § 1.6001–1(a) of the Income
Tax Regulations.
A certification will
be
treated as satisfying the requirements of
§ 179D(c)(1) if the certification contains
all of the following:
June 26, 2006
1177
2006–26 I.R.B.
.01 The name,
address,
and telephone
number of the qualified individual.
.02 The address of the building to which
the certification applies.
.03 One of the following statements by
the qualified individual:
(1) Statement for energy efficient com-
mercial
building property:
The interior
lighting systems,
heating,
cooling,
venti-
lation and hot water systems, and building
envelope that
have been,
or are planned
to be,
incorporated into the building will
reduce the total annual energy and power
costs with respect
to combined usage of
the building’s heating,
cooling,
ventila-
tion,
hot
water,
and interior lighting sys-
tems by 50 percent or more as compared to
a Reference Building that meets the mini-
mum requirements of Standard 90.1–2001.
(2) Statement for energy efficient light-
ing property that satisfies the requirements
of the permanent rule of section 2.03(1)(a)
of this notice:
The interior lighting sys-
tems that have been, or are planned to be,
incorporated into the building will reduce
the total
annual
energy and power
costs
with respect
to combined usage of
the
building’s
heating,
cooling,
ventilation,
hot
water,
and interior
lighting systems
by 16
2
/
3
percent
or more as compared to
a Reference Building that meets the mini-
mum requirements of Standard 90.1–2001.
(3) Statement for energy efficient light-
ing property that satisfies the requirements
of the interim rule of section 2.03(1)(b) of
this notice:
The interior lighting systems
that
have been,
or are planned to be,
in-
corporated into the building satisfy the re-
quirements of the interim rule of section
2.03(1)(b) of Notice 2006–52.
(4) Statement for energy efficient heat-
ing,
cooling,
ventilation,
and hot
water
property:
The heating,
cooling,
ventila-
tion, and hot water systems that have been,
or are planned to be incorporated into the
building will
reduce the total
annual
en-
ergy and power costs with respect to com-
bined usage of the building’s heating, cool-
ing,
ventilation,
hot
water,
and interior
lighting systems by 16
2
/
3
percent or more
as compared to a Reference Building that
meets the minimum requirements of Stan-
dard 90.1–2001.
(5) Statement for energy efficient build-
ing envelope property: The building enve-
lope that has been, or is planned to be, in-
corporated into the building will reduce the
total annual energy and power costs with
respect
to combined usage of
the build-
ing’s heating, cooling, ventilation, hot wa-
ter,
and interior lighting systems by 16
2
/
3
percent
or more as compared to a Refer-
ence Building that meets the minimum re-
quirements of Standard 90.1–2001.
.04 A statement
by the qualified indi-
vidual
that
the amount
of such reduction
has been determined under the rules of No-
tice 2006–52.
.05 A statement
by the qualified indi-
vidual that field inspections of the building
performed by a qualified individual
after
the property has been placed in service
have confirmed that the building has met,
or
will
meet,
the energy-saving targets
contained in the design plans and spec-
ifications,
and that
the field inspections
were performed in accordance with any
inspection and testing procedures that (1)
have been prescribed by the National Re-
newable Energy Laboratory (NREL)
as
Energy Savings Modeling and Inspection
Guidelines for Commercial Building Fed-
eral Tax Deductions and (2) are in effect
at the time the certification is given.
.06 A statement that the building owner
has received an explanation of the energy
efficiency features of the building and its
projected annual energy costs;
.07 A statement that qualified computer
software was used to calculate energy and
power consumption and costs and identifi-
cation of the qualified computer software
used (see section 6 of this notice).
.08 A list identifying the components of
the interior lighting systems, heating, cool-
ing,
ventilation,
and hot
water
systems,
and building envelope installed on or in the
building, the energy efficiency features of
the building,
and its projected annual en-
ergy costs.
.09 A declaration,
applicable to the
certification and any accompanying docu-
ments,
signed by the qualified individual,
in the following form:
“Under penalties of perjury,
I declare
that I have examined this certification,
including
accompanying
documents,
and to the best
of my knowledge and
belief, the facts presented in support of
this certification are true,
correct,
and
complete.”
SECTION 5.
DEFINITIONS
The following definitions apply for pur-
poses of this notice:
.01 Building Square Footage.
The sum
of the floor areas of the conditioned spaces
within the building,
including basements,
mezzanine, and intermediate-floored tiers,
and penthouses with headroom height
of
7.5 feet or greater. Building square footage
is measured from the exterior faces of ex-
terior walls or from the centerline of walls
separating buildings,
but
excludes
cov-
ered walkways,
open roofed-over
areas,
porches and similar spaces, pipe trenches,
exterior terraces or steps,
chimneys,
roof
overhangs, and similar features.
.02 Building within the Scope of Stan-
dard 90.1–2001.
A structure that—
(1)
Is
wholly
or
partially
enclosed
within exterior
walls,
or
within exterior
and party walls, and a roof, affording shel-
ter to persons, animals, or property; and
(2) Is not a single-family house, a multi-
family structure of three stories or fewer
above grade,
a manufactured house (mo-
bile home), or a manufactured house (mod-
ular).
.03 Conditioned Space.
Any enclosed
space within the building qualifying as
cooled space,
heated space,
or indirectly
conditioned space defined as follows:
(1) Cooled Space.
An enclosed space
that is cooled by a cooling system whose
sensible output capacity exceeds 5 Btu per
hour per square foot of floor area.
(2) Heated Space.
An enclosed space
that is heated by a heating system whose
output
capacity relative to the floor area
exceeds 5 Btu per hour per square foot of
floor area.
(3) Indirectly Conditioned Space.
An
enclosed space (other than a heated space
or a cooled space) that is heated or cooled
indirectly by being connected to adjacent
space(s) and that satisfies either of the fol-
lowing conditions:
(a) The space’s surface area that is ad-
jacent to heated or cooled space multiplied
by the weighted average U-factor of such
adjacent surface area exceeds the space’s
surface area adjoining the outdoors,
un-
conditioned
spaces,
and
semi-heated
spaces (e.g.,
corridors) multiplied by the
weighted average U-factor of such adjoin-
ing surface area; or
(b)
The
air
from heated
or
cooled
spaces is intentionally transferred (natu-
rally or
mechanically)
into the space at
a rate exceeding 3 air
changes per hour
(ACH).
2006–26 I.R.B.
1178
June 26, 2006
.04 Qualified Computer Software. Soft-
ware that
meets
the following require-
ments:
(1) The software is included (at the time
the certification is given) on the Depart-
ment
of Energy’s published list
of quali-
fied software as described in section 6 of
this notice.
(2)
The software provides any infor-
mation that regulations or other guidance
require the taxpayer to file in connection
with energy efficiency of property and the
deduction allowed under § 179D.
(3) The software provides information
that allows the user to document the energy
efficiency features of the building and its
projected annual energy costs.
.05 Qualified Individual.
An individual
that—
(1) Is not
related (within the meaning
of §45(e)(4)) to the taxpayer claiming the
deduction under § 179D;
(2) Is an engineer or contractor that is
properly licensed as a professional
engi-
neer
or
contractor
in the jurisdiction in
which the building is located; and
(3)
Has represented in writing to the
taxpayer that
he or she has the requisite
qualifications to provide the certification
required under section 4 of this notice (in
the case of an individual providing the cer-
tification) or to perform the inspection and
testing described in section 4.05 of this no-
tice (in the case of an individual perform-
ing the inspection).
.06
Standard
90.1–2001.
ANSI/ASHRAE/IESNA
Standard
90.1–2001, Energy Standard for Buildings
Except
Low-Rise Residential
Buildings,
developed
for
the
American
National
Standards
Institute
by
the
American
Society of
Heating,
Refrigerating,
and
Air
Conditioning
Engineers
and
the
Illuminating
Engineering
Society
of
North America (as in effect
on April
2,
2003,
including
addenda
90.1a–2003,
90.1b–2002,
90.1c–2002,
90.1d–2002,
and 90.1k–2002 as in effect on that date).
SECTION 6.
LIST OF APPROVED
SOFTWARE PROGRAMS
.01 In General.
The Department
of
Energy will
create and maintain a pub-
lic list
of
software that
may be used to
calculate
energy
and
power
consump-
tion and costs
for
purposes
of
provid-
ing
a
certification
under
section
4
of
this
notice.
This
public
list
will
ap-
pear
at
http://www.eere.energy.gov/build-
ings/info/tax_credit_2006.html.
Software
will be included on the list if the software
developer submits the following informa-
tion to the Department of Energy:
(1) The name, address, and (if applica-
ble) web site of the software developer;
(2) The name, email address,
and tele-
phone number
of
the person to contact
for further information regarding the soft-
ware;
(3) The name, version,
or other identi-
fier of the software as it will appear on the
list;
(4) All
test
results,
input
files,
output
files,
weather data,
modeler reports,
and
the executable version of the software with
which the tests were conducted; and
(5) A declaration by the developer of
the software, made under penalties of per-
jury, that—
(a)
The software has been tested ac-
cording to the American National
Stan-
dards Institute/American Society of Heat-
ing,
Refrigerating and Air-Conditioning
Engineers
(ANSI/ASHRAE)
Standard
140–2004 Standard Method of Test for the
Evaluation of
Building Energy Analysis
Computer Programs;
(b) The software can model explicitly—
(i) 8,760 hours per year;
(ii) Calculation methodologies for the
building components being modeled;
(iii)
Hourly variations
in occupancy,
lighting power,
miscellaneous equipment
power,
thermostat
setpoints,
and HVAC
system operation,
defined separately for
each day of the week and holidays;
(iv) Thermal mass effects;
(v) Ten or more thermal zones;
(vi)
Part-load performance curves for
mechanical equipment;
(vii) Capacity and efficiency correction
curves for mechanical heating and cooling
equipment; and
(viii)
Air-side and water-side econo-
mizers with integrated control; and
(c) The software can—
(i) Either directly determine energy and
power costs or produce hourly reports of
energy use by energy source suitable for
determining energy and power costs sepa-
rately; and
(ii) Design load calculations to deter-
mine required HVAC equipment capacities
and air and water flow rates.
.02 Addresses.
Submissions under this
section must be addressed as follows:
Commercial Software List
Department of Energy
Office of Building Technologies,
EE–2J
1000 Independence Ave., SW
Washington, DC 20585–0121
.03 Original and Updated Lists.
Soft-
ware will be included on the original list if
the software developer’s submission is re-
ceived before July 1,
2006.
The list will
be updated as necessary to reflect submis-
sions received after June 30, 2006.
.04 Removal from Published List.
The
Department of Energy may,
upon exami-
nation, determine that software is not suf-
ficiently accurate to justify its use in calcu-
lating energy and power consumption and
costs for purposes of providing a certifica-
tion under section 4 of this notice and re-
move the software from the published list.
The Department of Energy may undertake
such an examination on its own initiative
or in response to a public request supported
by appropriate analysis of the software’s
deficiencies.
.05 Effect
of
Removal
from Published
List.
Software may not be used to calcu-
late energy and power
consumption and
costs for purposes of providing a certifi-
cation with respect
to property placed in
service after the date on which the soft-
ware is removed from the published list.
The removal will not affect the validity of
any certification with respect
to property
placed in service on or before the date on
which the software is removed from the
published list.
.06
Public Availability of Information.
The Department of Energy may make all
information provided under paragraph .01
of this section available for public review.
SECTION 7.
PAPERWORK
REDUCTION ACT
The
collections
of
information con-
tained in this notice have been reviewed
and approved by the Office of
Manage-
ment
and Budget
in accordance with the
Paperwork
Reduction
Act
(44
U.S.C.
3507) under control number 1545–2004.
An agency may not conduct or sponsor,
and a person is not
required to respond
to,
a collection of information unless the
June 26, 2006
1179
2006–26 I.R.B.
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 4 and 6.
This in-
formation is required to be collected and
retained in order
to ensure that
energy
efficient
commercial
building
property
meets the requirements for the deduction
under
§ 179D.
This information will
be
used to determine
whether
commercial
building property for which certifications
are provided is property that qualifies for
the deduction.
The
collection of
information is
re-
quired to obtain a benefit.
The likely respondents are two groups:
qualified individuals providing a certifica-
tion under
§ 179D (section 4)
and soft-
ware developers seeking to have software
included on the public list created by the
Department of Energy (section 6).
For
qualified individuals providing a
certification under § 179D,
the likely re-
spondents are individuals. The likely num-
ber of certifications is 20,000.
The esti-
mated burden per certification ranges from
15 to 30 minutes with an estimated average
burden of 22.5 minutes.
The estimated to-
tal annual reporting burden is 7,500 hours.
For
software
developers
seeking
to
have software included on the public list
created by the Department of Energy,
the
likely respondents are individuals,
corpo-
rations and partnerships.
The estimated
total annual reporting burden is 75 hours.
The estimated annual
burden per respon-
dent varies from 1 to 2 hours,
depending
on individual
circumstances,
with an es-
timated average burden of
1
1
/
2
hours to
complete the submission required to have
the software added to the public list.
The
estimated number
of
respondents is 50.
The estimated frequency of responses is
once.
Books or records relating to a collection
of
information must
be retained as long
as their contents may become material in
the administration of any Internal Revenue
law.
Generally,
tax returns and tax return
information are confidential,
as required
by 26 U.S.C. 6103.
SECTION 8.
DRAFTING
INFORMATION
The principal
author
of
this notice is
Jennifer
C.
Bernardini
of
the Office of
Associate
Chief
Counsel
(Passthroughs
& Special
Industries).
For
further
in-
formation regarding this
notice,
contact
Jennifer C. Bernardini at (202) 622–3120
(not a toll-free call).
Clarification of
Notice
2006–26
Notice 2006–53
On February 22,
2006,
the Service is-
sued Notice 2006–26, 2006–11 I.R.B. 622.
This notice clarifies that
section 4.04 of
Notice 2006–26 should read as follows:
.04 Specifically and Primarily De-
signed.
A component
is not
specifically
and primarily designed to reduce heat loss
or gain of a dwelling unit
if it
provides
structural
support
or
a finished surface,
as in the case of
drywall
or
siding.
In
addition,
a component
is not
specifically
and primarily designed to reduce heat loss
or gain of a dwelling unit
if its principal
purpose is to serve any function unrelated
to the reduction of heat loss or gain.
For
purposes of
the preceding sentence,
the
principal
purpose of a component
serves
functions
unrelated to the reduction of
heat loss or gain if—
(1) Production costs attributable to fea-
tures other than those that reduce heat loss
or gain exceed production costs attribut-
able to features that
reduce heat
loss or
gain; or
(2) The facts and circumstances other-
wise establish that the component’s prin-
cipal purpose is to serve a function other
than heat loss or gain.
Taxpayers who purchased siding on or
before June 26,
2006 may rely on a man-
ufacturer’s certification that
the siding is
an Eligible Building Envelope Component
for purposes of the section 25C credit.
A
manufacturer will not be subject to penal-
ties under § 7206 or § 6701 on account
of a certification that
siding is an Eligi-
ble Building Envelope Component
under
section 4.02 of Notice 2006–26 unless the
manufacturer continues to provide the cer-
tification to purchasers of the siding after
June 26, 2006.
DRAFTING INFORMATION
The principal
author
of
this notice is
Jennifer
C.
Bernardini
of
the Office of
Associate
Chief
Counsel
(Passthroughs
& Special
Industries).
For
further
in-
formation regarding this
notice,
contact
Jennifer C. Bernardini at (202) 622–3120
(not a toll-free call).
Credit for New Qualified
Alternative Motor Vehicles
Notice 2006–54
SECTION 1.
PURPOSE
This
notice
sets
forth interim guid-
ance, pending the issuance of regulations,
relating to the new qualified alternative
fuel motor vehicle (QAFMV) credit under
§ 30B(a)(4) and (e) of the Internal
Rev-
enue Code (including the reduced credit
under
§ 30B(e)(5)
for
mixed-fuel
vehi-
cles).
Specifically,
this notice provides
procedures
that
a
vehicle
manufacturer
(or, in the case of a foreign vehicle manu-
facturer, its domestic distributor) may use
if it chooses to certify:
(1) that a vehicle of a particular make,
model,
and year
meets
certain require-
ments that
must
be satisfied to claim the
new QAFMV credit
under
§ 30B(a)(4)
and (e); and
(2) the amount of the credit allowable
with respect to that vehicle.
This notice also provides guidance to
taxpayers who purchase vehicles regard-
ing the conditions under which they may
rely on the vehicle manufacturer’s (or,
in
the case of a foreign vehicle manufacturer,
its domestic distributor’s) certification in
determining whether a QAFMV credit
is
allowable with respect to the vehicle, and
the amount of the credit.
In addition,
the
notice provides guidance with respect
to
certain issues relating to qualification for
and computation of the credit. The Internal
Revenue Service and the Treasury Depart-
ment expect that the regulations will incor-
porate the rules set forth in this notice.
SECTION 2.
BACKGROUND
Section 30B(a)(4) provides for a credit
determined under § 30B(e) for certain new
QAFMVs.
The credit is equal to the appli-
cable percentage of the incremental cost of
the new QAFMV.
The minimum applica-
ble percentage for QAFMVs is 50 percent,
but the applicable percentage is 80 percent
2006–26 I.R.B.
1180
June 26, 2006
| File Type | application/pdf |
| File Title | 2005 Form 1040 |
| Subject | U.S. Individual Income Tax Return |
| Author | SE:W:CAR:MP |
| File Modified | 2006-12-30 |
| File Created | 2006-12-30 |