The Process
Our team will determine how much savings you’ll get with a lighting upgrade on your facility. Then, we will facilitate a shared energy savings agreement between you and your utility company. This usually lasts from five to six years.
Advantage of Our Program
Since our energy savings initiative comes without capital cost, you won’t need to invest money for the upgrade or collect any debts. Maintenance and repair will also be handled for free. Because of this, the program will give your company a positive cash flow experience from day one.
Since our energy saving initiative is considered a service without investment or expense, there will be no need to report it on your balance sheet. Responsibility will not be an issue on your part.
Energy Efficient Commercial Building Deduction (I.R.C. §179D) Key Features:
Efficiency Is Based on 3 Components:
Individual Components = $0.60/sq. ft., for a Maximum Tax
For Interior Lighting Retrofits, Law Requires a Lighting
Parking Garages, Agriculture Houses, Processing
Taxpayer Claims Deduction as ‘Other Deduction’ and
Deduction Claimed in Tax Year Work Is Completed
Requires Certification by Unrelated Contractor or PE
Requires Reduction in Basis of the Property Equal to the
Taxpayer May Claim Deduction in Addition to Other
Energy Efficiency Tax Deduction Benefit Example:
XYZ Furniture, a manufacturer and distributor of office furniture and equipment based in Asheville, NC, completed a $43,000 LED Lighting Retrofit Project in Fall 2019 for its Production Facilities with Estimated Combined Square Footage of 100,000 sq. ft.:
Estimated EECB Deduction:
100,000 x $.60 = $60,000
Estimated Tax Deduction Benefit (After Tax Cash Value):
$60,000 x 30% = $18,000 (~41.8% of the Initial Capital Outlay (18,000÷43,000))