SDT: Normal 39 year recovery life for lighting/building equipment. 100,000 sq ft project $60,000
Normal depreciation would be $1540 per year.
With EPACT you can deduct 100% in year 1.
Minimum 25% reduction in demand/energy.
Form 3115 Application for change in Accounting Method 179
MARNERI: Energy Policy Act of 2005 (EPACT) Federal Tax Deduction for Energy Efficient Lighting The Energy Policy Act of 2005 (EPACT) includes a tax deduction for energy efficient buildings systems
EPACT Tax Deductions for Energy Efficiency Projects The U.S. Department of Energy reports that lighting represents 40% of the average commercial building’s electric bill.
The Energy Cost Savings Council, reports that energy–efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. Yet, 80% of existing commercial buildings operate lighting systems installed before 1986. Aelux is proud of the fact that many of its customers enjoy an even higher return.
To combat the country’s ongoing energy issues, Congress passed The Energy Policy Act of 2005 (EPACT). EPACT contains the Energy Efficient Commercial Buildings Deduction, which permits deduction of the entire cost of new lighting systems completed before January 1, 2014, in a single tax year instead of depreciating it over a period of years.
The Commercial Buildings Tax Deduction also includes the Interim Lighting Rule that allows deducting non–warehouse indoor lighting at between $0.30 and $0.60/sq.ft on a sliding scale based on a 25–40% reduction below the maximum allowable lighting power density (W/sq/ft.). In warehouses, the indoor lighting is required to achieve a 50% reduction in lighting power density to obtain the maximum deduction of $0.60/sq.ft. The Interim Lighting Rule also includes additional control and switching requirements. Costs over the legislated caps are deducted on normal, non–accelerated schedule.
To obtain the deductions, lighting projects must meet the National Renewable Energy Laboratory (NREL) Energy Savings Modeling and Inspection Guidelines, and require 3rd party certification. Part of Aelux turn-key service for lighting upgrades is to provide the necessary calculations and 3rd party certifications.
Without these 3rd party certifications you run a real risk of losing these valuable tax incentives.
Contact XXXXX as soon as you decide to explore a lighting retrofit for your facility, so you can be certain that you will receive every possible tax incentive. Don’t leave money on the table or suffer a longer project ROI than necessary by missing out on this deduction.
Call or click today to schedule a no cost, no obligation energy savings lighting assessment which will contain every possible benefit and incentive specific to your project.