Business Tax Credits Available for Lighting Upgrades

Business Tax Credits for LED Lighting

Congress  has extended the Energy Efficient Commercial Buildings Deduction (Section 179D) tax credit originally included in the 2005 Energy Policy Act (EPACT) and the Emergency Economic Stabilization Act of 2008. If you manage, own or lease a commercial or industrial building, and you pay taxes, you may be entitled to receive a tax credit per square foot of building for installing or upgrading your lighting to an energy efficient LED system. You are eligible to claim the deduction for new construction and energy-renovation projects. The deduction is available for different types of building use, including warehouses, industrial enterprises, office buildings, retail stores, and four-story+ apartment buildings.

Carry-Back and Carry-Forward

If you previously installed LED lighting up to three years ago, you may be entitled to carry back accrued tax deductions for two years or carry those credits forward for up to 20 years. There are some exceptions to this, so please consult with your tax attorney or CPA.

How to Qualify

To qualify for available tax credits, the Act says the lighting system improvements must be made to interior systems. There are different ways to calculate the tax credit.

  • If the LED lighting system is installed as part of a major project which includes HVAC and/or building envelope work, the then energy saving resulting from the project must equal 16.67% of the total savings.
  • If the lighting system improvements come under the Interim Lighting Rule, then lighting power density should be reduced by between 25% and 40%, or 50% for a warehouse.

Cost Savings

179D enables savings of up to 60 cents per square foot. This site provides more detail. As we mentioned above, the energy savings must equal certain minimum levels, depending on which IRS notice applies, and the actual building use. The bottom line is that the tax savings – which can be carried back or forward – will have an impact on the cost of your renovation project.

Please click here to contact us to discuss how we may be able to assist with your energy savings plans to install or improve your LED lighting system. We are here to answer your questions. We are not tax experts, so please consult your tax attorney or CPA for specific tax advice.


Top 3 Reasons to Upgrade Your Lighting

Business owners and building managers alike have been waging a war against lower-efficiency facility lighting for generations. Now, with LED lighting more accessible and affordable than ever, facility managers are faced with the question not only of replacing their out-of-date lighting systems, but the question of why they haven’t pulled the trigger on the energy-saving solution yet. With cost-saving effects, lower rates of failure and therefore lower maintenance costs, and better working conditions, business owners are going to want to strongly consider upgrading to energy-efficient LED lighting sooner rather than later.

Save Money on Utility Bills

It’s a well-known fact that LED light bulbs use considerably less energy than their fluorescent counterparts. These energy savings, when spread over an entire facility’s lighting system, could save thousands of dollars over the course of a year. Not only do these lamps save on the utility bill, but utility companies offer rebates simply for switching to LED systems. Business owners would be wise to consider these utility rebates in addition to energy bill savings.

Lower Rate of Failure

Not only do LED lights offer the obvious energy-efficient savings on utility bills, but they also offer energy efficient savings in terms of lower maintenance costs and labor requirements. LED lights last on average, years longer than traditional lighting and therefore present fewer needs for maintenance, replacement, and quality-control measures.

High Quality Lighting Equals Good Working Conditions

Lighting conditions and quality of work go hand-in-hand when it comes to commercial facilities. Business owners and building managers are wise to consider the best and most energy-efficient lighting solutions possible in order to provide safe and productive working conditions for their team. LED lights provide quiet, consistent lighting solutions, allowing employees to focus on the task at hand.

Overall, the energy-efficient benefits of LED have long outweighed their traditional lighting predecessors. So, as a business owner or building manager, the next question isn’t whether to make the switch but rather when is the best time? Contact us to make the switch today!

How Utility Rebates and Incentives Help Your Business

A few years ago, “going green” was all the rage, if sometimes only in theory.

Businesses across the United States made a point to sell themselves on how eco-friendly they and their products were.

Sadly, though, many of these businesses only stated what became the status quo, and few of them actually practiced what they preached

These nefarious actions made those legitimate among us look bad in the eyes of consumers. But with so many advantages and benefits to being green, it’s simply inexcusable not to try.

What’s more, utility rebates and incentives provided by the US Energy Department make going green easy, even for those who never fully followed through with their actions previously.

Because, really, all that a business has to do for more information regarding rebates, is to frequent and click on their state from the drop down menu.

For example, the results for Arizona are vast and encompass a range of commercial energy saving opportunities.

In order to find qualifications and further information, all one has to do is filter by eligibility and savings. From there, they can research ways to be more eco-friendly while saving money at the same time.

Take solar energy, for example. Over the last 10 years, California has single-handedly turned a means to conserve into a way to save.

Further, global leaders in business have lent a helping hand in legitimizing green energy.

Wal-Mart, as was reported by Forbes recently, has become a green global giant, even if their business practices are perceived as a little less than savory at times.

From the article:

Wal-Mart has installed 105 megawatts of solar panels–enough to power about 20,000 houses–on the roofs of 327 stores and distribution centers (about 6% of all their locations). That’s enough to make Wal-Mart the single biggest commercial solar generator in the country. And it intends to double its number of arrays by 2020.

Wal-Mart, among many other business leaders in the US, is changing green energy.

So while 2017 is a transition year for “going green,” businesses nationwide can still bask in the imminent glow of changing the world and consuming less. Because, in the end, earning the savings is as easy as visiting a website.

How a Lighting Audit Can Help You Save

auditIf you are interested in lowering your utility expenses, you may have heard about some of the ways that lighting rebates can help you become more energy efficient for less. However, did you know that a free lighting audit could help you maximize your efforts and save more?

Lighting Audits: What Are They? 

Generally a representative of your utility company will come out to perform a lighting audit. While they are free, you will need to schedule an appointment in advance.

During a lighting audit, an energy specialist will tour your facility and take notes on the current lighting setup.  The energy specialist will photograph your workplace, obtain information about light fixture placement and quantity, and ask what type of work is performed in different areas. He or she will also calculate stationary light wattage and quantity. Then, the specialist will come up with a specific and actionable plan to make your workplace more energy efficient.

These plans typically include:

  • A detailed plan showing the optimal lighting layout for your business
  • Calculations that show the return on investment your business will see if you make the changes
  • Financial information on the total cost of changes
  • Information on grants, rebates, and other ways that can help you make these changed for less money
  • “Next steps” that will help you commit to making these changes

If this sounds like a lot of work, don’t be alarmed. You’re having most of the work performed for you by a lighting expert, and you will receive a free list of actionable tips that allow you to jump-start your plan to achieve greater energy efficiency in the workplace.


How to Find Business Lighting Rebates

rebateHow to Find Business Lighting Rebates

Lighting costs can account for as much as 40 percent of business electric bills, which makes finding eco friendly lighting a high priority for business that are looking to reduce their energy expenses. Lighting rebates can help your business cut costs without spending a lot on light fixtures, so let’s learn how to find these rebates.

How to Find Business Lighting Rebates

DSIRE, the Database of State Incentives for Renewables and Efficiency, offers a clearinghouse of rebates, grants, and initiatives for businesses as well as individuals. DSIRE allows you to sort by sectors, so you only see industrial or commercial savings opportunities. Start by searching DSIRE for potential rebates in your area to identify some ways to save on business lighting.

Don’t overlook your utility company. Many utilities offer a free lighting audit. This can be a great way to quickly learn what lights are hogging your energy and which lights only use a small amount of power. In a light audit, you’ll learn the optimal layout of lights to maximize visibility and save money, the estimates ROI of adding eco-friendly business lighting, proposed finances, and your next steps. If you want to change your business lighting but feel overwhelmed by the process of finding rebates and scheduling electric work, this can demystify the process for you. Your utility company may also have rebate information that they can provide to you free of charge.


If you’re thinking you’ll be able to replace everything from the exit sign to the copy closet light with an energy-efficient bulb, think again. Not every type of lighting will be available at a rebate. The good news is, once you switch to energy-efficient fixtures, you will begin to see cost savings immediately!


How Can I Get Lighting Rebates and Tax Incentives For My Business?

Lighting is one of the most critical parts of a business or organization. Employees can’t work, customers can’t consume, and schools and medical facilities are crippled without it. If you’ve decided to make the energy efficient and money saving switch from incandescent, fluorescent, or metal halide lighting, there’s plenty of lighting rebates and tax incentive programs to help you save on this investment.

  • · ENERGY STAR partners often sponsor rebates, sales tax exemptions or credits, and recycling incentives. Use the Special Offer/Rebate Finder to find out what offers are currently available in your area.
  • · Federal tax credits can reduce the amount of income tax your business has to pay. The U.S. Small Business Administration provides information about energy efficient upgrade tax credits for homebuilders, manufacturers, and owners or lessees of commercial buildings.
  • · The U.S. Department of Energy allows you to search for rebates and incentives that support energy efficiency by state, and keep an up to date list of nationwide programs that are available to both residential and commercial consumers.
  • · Always check with your utility company to see what type of money-saving tools they offer. Often programs aren’t limited to rebates and include energy efficient financing, light bulb discounts, lamp exchanges, retrofit incentives, new construction design savings and more.

Lighting efficiency has its advantages. Depending on the type of business you operate, lighting can account for 20% to 50%of your energy consumption. Your organization can save significant amounts of money by upgrading and taking advantage of available lighting rebates and tax credits. And, because the energy efficient lighting industry is always improving, lighting can provide some of your highest return on investment rates.

Relumination LED Lighting Enhances Parnian Exquisite Furnishings Showroom for Better Customer Experience

PHOENIX, AZ–(Marketwire – Oct 10, 2012) – Relumination, a leading provider of LED lighting solutions for businesses, helped Parnian significantly reduce energy use and provide a better shopping experience for the affluent clientele visiting the 15,000 square foot unique showroom filled with high end contemporary furniture and artwork.

Relumination provided a turn-key solution of LED lighting products, installation and utility rebate administration. Relumination replaced all the halogen and incandescent showroom lighting, including main showroom downlights, spotlights and decorative lamps.

The new LED lighting installed by Relumination allows buyers the ability to better distinguish the details of Parnian’s hand-crafted contemporary furniture and artwork. The LED lights emit a pure white light, improving the customer’s ability to differentiate variations of colors and the fine points of furnishings Parnian creates and imports from around the world. The established prominent retailer and manufacturer also benefits from significant savings in energy use and costs with the new LED lighting.

“It is core to our family business that we provide the highest quality of home and executive office furnishings to our valued customers, while we also do more to help reduce our carbon footprint in the 21st century,” said Leila Parnian, vice president of Parnian. “We have integrated our beautiful showroom experience with energy efficient LED lighting along with Arizona’s first offering of LEED Certified environmental high end furnishings made of bamboo, old barn wood, refurbished woods and recycled metals.”

Leila Parnian, who graduated from Arizona State University in 2009 with a Masters in Urban and Environmental Planning, is using her education in sustainable development by finding ways to eliminate waste at the family-owned business. “We have reduced our electric bill by nearly 50% because of the new high-quality lighting, which also reduced our use of air conditioning,” said Leila.

“The amount of lights used in the luxurious showroom was wasting energy and generating tremendous amounts of heat,” said Daniel Henderson, CEO of Relumination. “We were able to replace all the current fixtures with LED lamps that provide a superior quality of light, reduce the temperature of the showroom and significantly reduce the maintenance of lighting at the showroom. We calculated a return on investment for the upgrade at 100% in less than nine months.”

Parnian, an internationally recognized furniture showroom and manufacturer, was founded in 1977 by Architects Abdolhay and Parvaneh Parnian. The Arizona family-business was passed to second generation, Ali Parnian and Leila Parnian, who continue the tradition of marketing quality furnishings from around the world, along with their father’s designed furniture, Leila’s artwork and now environmentally friendly creations represented with exquisite ambience in their architecturally renowned showroom.

About Relumination — Relumination, LLC is a lighting technologies solutions company that helps customers reduce energy costs, save electricity, minimize facilities management expenses and decrease their environmental footprint. We provide reliable and sustainable LED products and services that exceed quality standards of reducing energy consumption by up to 90%. Our valued customers are in various industries from manufacturing to retail. The company is privately held and headquartered in Arizona.

About Parnian — Parnian Furniture, an award-winning furniture store and manufacturer, was started in 1977 by Abdolhay and Parvaneh Parnian and continues to be family owned and operated by Leila Parnian. Parnian specializes in high end modern and contemporary furniture. In addition to the over 100 product lines of furniture and accessories that are imported, Parnian also has a custom design and production studio in Phoenix, Arizona in which they design and create custom hand crafted furniture for the home and office using old world craftsmanship for the most discriminating of clientele. Services include full interior design, custom furniture design, kitchen design, office design and manufacturing, special ordering of furniture, rugs, accessories, lighting and art. Although their headquarters and 15,000 square foot showroom is located in Scottsdale, Arizona, Parnian receives international orders and ships to their clients all over the world.

Jamie Glass
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