Submittal

determining whether the 16⅔-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 installed on or in the building

for all prior taxable years.

(b) Application to Multiple Taxpayers. If two or more taxpayers

install energy efficient 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 compared 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