Lately, many Indiana businesses have been inquiring about tax rebates on LED installation in their commercial buildings. It’s no surprise! LED lights are becoming more and more popular every day as people learn about their many benefits.
LEDs use far less energy than traditional bulbs and last much longer, meaning you’ll save money in the long run. So if you’re thinking of switching to LEDs in your business, you need to know about tax rebates.
Follow the Renovation Trends:
The demand for upgraded illumination solutions is growing at a rapid rate. The global lighting market is anticipated to reach $160 billion by 2026. Replacing, upgrading, relighting, and retrofitting current systems are terms used for renovation.
What are Tax Rebates?
Tax rebates are available for businesses that switch to energy-efficient lighting solutions. Incentives and rebates help offset the investment cost and make these projects more affordable. Many electric utilities, state agencies, and local governments offer tax rebates regularly as part of their energy conservation programs.
Some common types of businesses that take advantage of tax rebates are:
- Retail Stores
- Industrial Facilities
How do Tax Rebates Work?
Taking advantage of tax rebates can vary depending on the organization offering the rebate. Typically, businesses must submit documentation proving that they have switched to energy-efficient lighting. It could include copies of invoices, manufacturer’s certification, or an energy audit. Once the documentation has been reviewed, the organization will issue a rebate check.
The amount of the rebate also varies depending on the program. Some programs may offer a fixed rebate amount for each lighting fixture replaced. Other programs may offer a percentage of the total project costs.
For example, a restaurant that spends $5,000 on new LED lighting fixtures might receive a rebate of $1,000 under a program that offers a 20% rebate on lighting projects.
Are There Any Drawbacks to Tax Rebates?
One potential drawback of tax rebates is that they can take time to process. Businesses may need to wait several weeks or even months to receive their rebate check.
Another potential drawback is that tax rebates may not be available in every state. Some states may offer rebate programs, while others may not offer rebates.
Businesses should research their state’s policies on tax rebates before embarking on a lighting upgrade project.
What LED Products are Eligible?
Not all LED products are eligible for a tax rebate. To qualify, the product must meet specific energy-efficiency standards.
The product must also be on the ENERGY STAR® Qualified Products List. This list includes many LED products, including light bulbs, fixtures, and lamps.
To find out if a particular product is eligible for a rebate, businesses can check the ENERGY STAR website or contact their local utility company.
For instance, Juno and MAXIM are two under-cabinet light fixtures that may be eligible for a rebate.
How Can an LED Project Management Company Help?
Businesses interested in upgrading to LED lighting may want to hire an LED project management company.
They can help businesses complete an energy audit and determine which products are eligible for a rebate.
The company can also help businesses install their new LED lights and fixtures.
At CIV LED Lighting Solutions, LLC in Terre Haute, Indiana, we specialize in LED project management.
We will help you determine which products are eligible for a rebate and assist you with our Energy Savings Program.