March 1, 2016 08:00

Anyone considering a lighting retrofit project, assuming their retrofit contractor understands EPAct and can get them certified for this lucrative tax deduction.

The EPAct Accelerated Tax Deduction is pending legislation by Congress to be renewed for 2017. Meanwhile there are current REBATES from First Energy and AEP!

Section 179D of the IRS Tax Code is one of the most under used tax deductions available. So why are most people not taking advantage of this tax deduction? The answer is simple, lack of knowledge. This article will outline a few facts about Section 179D and help industrial and commercial building owners realize what they’re missing.

Tax incentive, Accelerated Tax Deduction, EPAct, Section 179d

Time To Cash In On Your Investment

  • Section 179D, as it is officially called is also known as EPAct.
  • The tax provision allows owners of their buildings to enjoy accelerated tax deductions on the cost of their 2016 installed, energy efficient lighting retrofit project.
  • The tax provision was first made part of the IRS tax code back in the year 2006. It expired at the end of 2013, however was recently renewed.
  • The deduction for energy efficient lighting typically earns our clients .60 per square foot, as an immediate deduction to be taken in 2016
  • If the interior lighting of a building is converted by a lighting retrofit contractor to energy efficient T8, T5 or LED lighting and meets or exceeds the threshold requirements below ASHRAE 2007 standards and bi-level switching is installed, our clients can qualify for an accelerated deduction to be taken all in the year their project was installed.
  • Using a 35% tax bracket, this deduction x 35% is the value their tax liability can be reduced for 2016.
  • Manufacturing facilities, warehouses, distribution centers, industrial and commercial buildings qualify for EPAct, if they meet the watts per square foot threshold requirements.
  • A certificate of energy savings must to be provided to the IRS to substantiate this deduction. ROI Energy, through a 3rd party service provides this documentation. There may be a cost for this service, however it makes good sense to take advantage of this deduction, in order to reduce your tax liability and put this money back on your bottom line where it belongs. After all, you’re the one making the investment, so why not take advantage of this tax savings opportunity before it expires on December 31st, 2016.

For more information about taking advantage of this worthwhile tax benefit, contact Bob Taussig, president of ROI Energy Solutions, Inc.

If you’d like someone to visit your facility to provide a no obligation, lighting energy analysis, click here to contact us and we’ll help determine the right lighting solution for your facility as well as present your payback and ROI. We will calculate your EPAct tax benefit as part of our proposal.

ROI Energy Solutions of Cleveland, Ohio and Houston, Texas has performed more than 300 industrial lighting upgrades and specializes in installing your lighting retrofit project without interrupting your operation. Don’t wait, contact us today. You’ll be glad you did.

Phone: 330-931-3905 or website:

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