We Are LED Lights welcome our customers to take advantage of their state’s rebate and incentive programs for energy efficient lighting. Below we have listed each state and the rebates available to make it easy and cost effective when switching from tradition fluorescent lights to our high quality, long lasting LED lighting fixtures. Additionally We Are LED Lights provides Cash Flow Positive (CFP) programs, to let our credit-worthy customers finance their purchase and keep a positive return from the very beginning.
$.60 Federal Tax Deduction per Square Foot!
My Mission - Bring a 75% Energy Savings and a $.60 per sq. ft, Federal Tax deduction to American businesses, conserving more & improving quality of our workplaces and Natural Environment, with SMD LED Tube Lighting!
In combination with the federal tax deductions, namely the “The Energy Policy Act”, LED Tubes and Ballasts can save you 75% or more when compared to fluorescent lights. In addition, LED lights last for over 20 years before needing to be replaced, while fluorescent lights only last 8000 hours and incandescent bulbs 1000 hours. It’s been estimated by the Energy Cost Savings Council that business who invest in LED fixtures will have a 100% return on investment within 2.2 years.
In 2005, the federal “Energy Policy Act” included a generous tax deduction program for commercial buildings that make the switch to energy efficient technologies. The incentive was called “Energy-Efficient Commercial Building Tax Deduction”, which allotted tax deductions for expenses incurred when upgrading buildings to energy-efficient features. The deduction was extended through 2013 as part of the “Emergency Economic Stabilization Act of 2008”.
Some of the details of the “Commercial Building Tax Deduction” include:
To qualify for the maximum $1.80 per sq. ft. deduction, buildings must install either 1)interior lighting; 2)building envelope; 3)heating, cooling, ventilation or hot water systems that will reduce utility costs by 50% or more when compared to the requirements set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. (ASHRAE).
To qualify for deduction of $0.60 per sq. ft., buildings must install either 1)interior lighting, 2) building envelope or 3) heating/cooling ventilation or hot water systems and have not exceeded 50% of utility cost reduction.
Utility/Energy savings are to be measured by IRS approved computer software.
Optimize Your Lighting Fixtures:
One of the primary steps to increasing your building’s energy efficiency is improving your lighting fixtures. The Energy Star “Building Upgrade Manuel”, outlines the appropriate strategies to be implemented when retrofitting your building to meet energy efficient targets. The “Manuel” also provides a detailed section on lighting, including information on how to meet tax deduction requirements. Improving your building’s lighting system is a small investment, but large leap in improving your building’s energy efficiency and tax deduction eligibilities.
Traditional lights like fluorescent and incandescent lighting systems use 35% of the energy produced in commercial buildings while producing unnecessary heat. Energy efficient commercial LED lighting systems are cost effective and produce little to no heat. By just renovating your building with energy efficient lights, not only do you reduce energy costs for light, but you directly affect air conditioning usage and carbon footprint output.
If you upgrade your lighting system to utilize “dual switching” abilities, where half of the lights can be turned off and still have uniform light output and reduce energy consumption by 25%, you may meet the requirement for a $0.60 per sq. ft. deduction. If the energy consumption is reduced by over 25%, the deduction will increase. The reduction percentage is based on the values established in ASHRAE Standard 90.1-2001 table.
Speak with Tax Consultant
When beginning renovation on your building, speak with a tax professional who can help you determine whether you are qualified for the deduction and the steps you need to take. Only a tax professional will be able to give you the most up to date advice on how to file for these incentives and eligibility requirements.
Q. If my lighting renovation is more than $0.60/sq. ft. how will my remaining costs be taxed?
A. Remaining costs should be filed normally and face standard depreciation.
Q. If I’m renting an office in a building, will I receive a deduction if I renovate my office space to meet energy efficiency requirements?
A. This will depend on the agreement between you and your landlord. If you paid for the original office space renovation and construction you hypothetically have the rights to the tax deduction after you retrofit your space with energy efficient improvements. However, most often any tenant improvement for a lease returns to the building owner.
The final determination of tax deduction ownership is left up to you and your landlord. The “Commercial Building Tax Deduction” has no say in this arena. If this situation arises, speak with the landlord beforehand and see if a mutually beneficial arrangement can be made.
Q. If I’m a contractor, can I claim the deduction for the building I’m constructing?
If you are a contractor you can claim the deduction if you are the owner of the building. If you are a contractor/owner of a government building, you may still be qualified for this deduction. Please speak with your tax consultant for further information.
Business and Tax Incentive Information: http://www.mi.gov/documents/dleg/FAQs_Federal_Tax_Credits_256153_7.pdf
Northeast Region [+]
Mid-Atlantic Region [+]
Efficiency New Brunswick – NJ
Great Lakes Region [+]
Minnesota Power – MN
So. MN Municipal Power Agency
Riverland Energy Coop – WI
St. Croix Electric Coop – WI
WE Energies – WI
Midwest Region [+]
ComEd – IL
Indianapolis Power & Light – IN
Avista – IA
Southern Region [+]
Mountain Region [+]
Southwest Region [+]
Pacific, W Coast Region [+]
SDG&E – CA
Avista – WA