It has been estimated that only about 10% of eligible companies have taken advantage of the Commercial Building Deduction, known as EPAct, initially implemented in the Energy Policy Act of 2005. Are you among them? If not, you still have time, but you’ll need to act quickly. The “go green” incentive expires at the end of 2013.
What type of energy-efficient upgrades qualify? Briefly, commercial building owners need to install interior lighting, HVAC, or specific other technology that reduces energy and power costs to obtain tax deductions ranging from $0.60 to $1.80 per square foot. New construction and remodeling projects qualify, with varying percentages of energy reduction requirements, depending on what system(s) are being installed. Lighting deductions utilize a sliding scale proportional to the reduction of lighting power density (LPD).
At first, it may seem a little complex (what government-sponsored program isn’t?). Still, it can be well worth the effort, and the experts at the Tax Analytics Group have compiled a helpful infographic and handy tax-savings calculator to simplify things and assist in understanding how to obtain the best deduction for your investment.
Bottom line: not only can a well-planned lighting installation including energy-efficient, long-life LED lights provide significant benefits such as: lowering daily operating costs by reducing energy consumption by up to 90%; reducing heat output (which helps reduce HVAC loads in general areas as well as lowering temps in cold-storage facilities); and providing a healthier light source, it can also provide a reduced tax liability. And who doesn’t welcome that these days?
Contact us and let the lighting solutions specialists at Relumination help design, implement, and service your lighting retrofit today – and take advantage of those 2013 EPAct tax deductions while there’s still time.
