LED Commercial Lighting

Tax Incentives and Financing Options for LED Commercial Lighting

Capital Outlay and Financing

As every company decides how to revitalize there ability to cut costs, SLI understands that making a bold and progressive move to change from fluorescent lighting to LED lighting can be cumbersome. Recently some of our distributors have found inventive ways to make the change to SLI LED commercial lighting troffers more financially possible by providing a purchase / leasing option. This new and creative way for building owners and other entities to cover the capital costs of initializing a large project has been conveniently bundled into a convenient purchasing option. The savings will be seen through the return on investment. For example, a typical building 100,000-125,000 foot building, having a cost of electricity of $.10 per KW, the payback is about 3 years. By going with a lease to own option, your cost could be spread over a 3-6 year period- the end user never sees an increase in operating costs, but has a positive return on the investment in a few years after the initial payback begins. This allows the building owner to never have an added expense and upgrade their building to the most energy efficient lighting in the world at the same time.

The Energy Efficiency Act of 2005

Also known as the Commercial Building Tax Deduction provision in the August 2005 Energy Policy Act. This provision promotes energy efficient commercial building by giving a deduction of up to $1.80 per square food of property. The amount of deductions takes into account energy savings on lighting, HVAC and hot water systems, and building envelope system. Read more at http://www.engineeredtaxservices.com/site/energy_tax_credits.html

Receiving tax deductions is an easy process diagramed below by MENA at http://www.lightingtaxdeduction.org/tax3.html

MENA:
If you have read Section 1331 of EPAct 2005, the legalese can be daunting. The important thing to understand is the lighting portion of the Commercial Buildings Deduction is achievable using commercially available lighting technologies and good lighting practice aimed at exceeding the national energy standard.

Tax Deductions for Lighting in Your State

Currently there are deductions and financing in place to promote efficient energy consumption. The http://www.dsireusa.org/incentives/ lists many state fiancing and incentive programs. On example of incentives in North Carolina is the Energy Improvement Loan Program (EILP). You can find more information at http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=NC