Home > Induction Lights > Lighting Solutions for Commercial Lighting Tax Deduction

Lighting Solutions for Commercial Lighting Tax Deduction

Today there are more reasons than ever before to take special care when considering your lighting solutions for commercial buildings. The cost of lighting solutions on a larger scale can quickly eat up a limited budget and most business owners are looking to save money wherever they can. When considering lighting solutions for your commercial property, be aware that there are certain tax incentives for those who qualify for the Commercial Lighting Tax Deduction.This special deduction is part of the Energy Policy Act of 2005 which was signed into legislation by then President George W. Bush. The U.S. Department of Energy reports that 40% of the average commercial building’s energy bill is represented by lighting. This is a considerable percentage. The Energy Policy Act encourages business owners not only by making lighting solutions more affordable but also to make energy efficient lighting choices to lower electric bills and environmental impact as well.

By offering a tax deduction to commercial building owners, these individuals are motivated to convert older lighting systems to more energy efficient systems. The current expiration date for the Commercial Building Tax Deduction is January 1, 2014. This date has been extended two times since the legislation has been signed into law.

To earn the maximum cap of $1.80 per square foot as a tax deduction, the lighting system must be installed in the United States, be part of new construction or renovation and reduce the total annual energy and power costs to “at least 50% less than a building satisfying ASHRAE/IES Standard 90.1-2001”. This according to the Commercial Lighting Tax Deduction website.

When considering a new lighting system or the renovation of an older system, it is important to learn how your investment can help you save money down the road. Energy efficient lighting solutions will not only reduce your energy use and in turn your electric bill, but may also qualify you for a sizable tax deduction. Consult with both a tax professional and qualified lighting professional to ensure you qualify before starting your next project.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: