Decrease the overall cost of a commercial LED lighting upgrade with available rebates & incentives!

12 Sep 2016

Posted in General by Net Zero USA

Businesses interested in upgrading lighting to LED have the opportunity to take advantage of lighting rebates & incentives that can substantially decrease the cost of installing energy efficient lighting in an office, warehouse, or other commercial work space.

Utility Rebates & Incentives For LED Lighting

Power utilities across America have various lighting rebate programs which provide incentives and cash rebates for installing energy efficient commercial lighting projects. Programs are unique to each market, but generally offer a rebate per new lighting unit installed or a rebate based on the total amount of energy savings delivered.

Examples of utility lighting rebate programs

Any new or existing Georgia Power commercial customers can take advantage of the High-Efficiency Lighting System rebate which offers, $0.20-$0.40/watt reduced, capped at $25,000 per building per year up to 50% of project cost. More info here.

duke-energy-lighting-incentives-table-2016With the Energy Efficiency for Business (EEB) Program from Duke Energy Progress, businesses in North & South Carolina can receive cash for installing high-efficiency lighting. Incentives include $35/fixture for LED lighting, $40-$80/fixture for LED Panels, and up to $220/fixture for high bay light fixtures. More info here.

And with Florida Power & Light’s Business Lighting Program, high bay LED light fixtures are eligible for a rebate of $9-$20 dollars for every lamp replaced. More info here.

These are but a few examples of the commercial lighting rebate programs available in the Southeast. Contact a LED lighting installer near you to learn about the incentives & rebates available in your market.

179D Deduction & Bonus Depreciation For Lighting Improvements

The US federal government offers a tax deduction for qualified energy efficiency projects incorporated into commercial buildings. Under the Section 179 Deduction (179D), customers can reduce their taxable income through the use of the 179D deduction as it applies to lighting upgrades like LED lighting retrofits. This program was introduced as part of the Energy Policy Act of 2005 (“EPAct”).

The amount of Tax Deduction is equal to the square footage of the facility multiplied by $0.60. This amount is then multiplied by the respective tax rate to calculate the total customer savings.

Tax Deduction = Sq./Ft. X $0.60
Sq./Ft. X $0.60 X Tax Rate = Customer Savings

For example, a customer with a 100,000 square foot building would earn a tax deduction of $60,000. The customer would use this deduction to reduce their taxable income. If this customer had $200,000 of taxable income, it would then use the deduction to reduce that amount to $140,000. This means that the business would not pay taxes on $60,000 of income. If their tax rate was 34%, they would save $20,400.

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction.

For more detailed information you can view the IRS Publication 946, Chapter 2 on electing the Section 179 Deduction.

Don’t miss out on commercial lighting rebates!

The bottom line is that there’s never been a better time to look into an energy efficient lighting project at your facility. Energy savings combined with eligible rebates & incentives makes LED lighting upgrades a no-brainer for any size business, large or small.

Net Zero USA’s commercial LED lighting installers are located throughout the country, offering free lighting audits and expert knowledge of local lighting rebates. Request a consultation to learn about improving lighting and your bottom line TODAY!