EPAct Tax Deductions and How to Get Them

In 2005 Congress passed the Energy Policy Act, which created the EPAct tax deductions. Since then, the act has been renewed twice, making it possible for companies to take advantage of the tax deduction through 2015. But many companies are not aware of this tax deduction, or how to take advantage of it. Since the deduction is set to expire at the end of 2015, it would be beneficial for a company to look into the act and see if they qualify for the deductions.
The Energy Policy Act provides a tax deduction of up to $1.80 per square foot. It was intended that companies would perform upgrades to their facilities to meet the energy efficiency standards outlined by the act in order to qualify for the deductions. The deductions are divided into three areas for $0.60 per square foot. To qualify for the lighting deduction, a company must be 50% below the ASHRAE standard for energy efficiency metrics. A certified electrician must verify that the upgrades meet the standards for the act, but after that it is only a matter of filling out the paperwork and submitting it along with the tax filing for 2015. It is recommended that a tax professional verify that the filing for the deductions is correct.
While the intention of the act is to help companies cover the cost of making upgrades to their lighting, HVAC, and building envelope, lighting is probably the easiest and least costly upgrade that can be made. A simple change to LED lighting throughout the company is generally enough to meet the standards, which, again, must be verified by a certified electrician.
Time is running out in 2015 to make lighting upgrades, but Relumination may be able to help a business meet the lighting standards to get the $0.60 per square foot tax deduction.