Federal Energy Incentives

The Energy Policy Act of 2005 has created incentives for retrofit lighting projects

Rising energy prices, coupled with provisions of the Energy Policy Act of 2005 (EPAct05), continue to prompt maintenance and engineering managers to look for new ways to reduce lighting energy costs. Provisions of the EPAct05 opened up new opportunities in the lighting arena by creating incentives for organizations installing new or retrofit lighting projects.

To help organizations qualify, managers will need to take a closer look at their facilities’ lighting needs, as well as the products and technology to help meet those needs. EPAct05 provides a number of important incentives to reduce energy costs. The most important part of EPAct05 for institutional and commercial buildings is section 1331, which provides a tax deduction up to $1.80 per square foot (psf) for a building using 50 percent less energy than one designed to comply with ASHRAE 90.1-2001.

Lighting and HVAC systems and the building envelope each receive a deduction of $0.60 psf for their contribution to the 50 percent savings. The provision applies to qualifying new construction, renovation and retrofit projects put in service from Jan. 1, 2006, to Dec. 31, 2013*.

* This program was originally planned to run through Dec 31, 2008 but has been extended through Dec 31, 2013.

* Lighting Services, Inc. of Twinsburg, Ohio has the ability to certify your company after a lighting retrofit installed by us meets the Energy Policy Act of 2005. The 60 cent per square foot tax deduction certification is then provided,in order to help your company comply with the federal tax code. Final tax advice should be sought from your company’s accountants.