LED Tax Benefits

By Andrew J. Pisani

Owners weighing the cost and benefits of LED retrofitting need to review the Tax Code. EP Act 179D is a tax benefit in place which allows building owners to take up to $1.80 per square foot as a tax deduction. Qualifying is based on a building’s ability to meet energy efficiency targets.

The math can work in favor of the building owner. Even if the amount of the tax benefit exceeds the cost of the retrofit, the remaining balance or difference can be applied to past projects. In fact, it is possible to go back up to ten years, and use these to balance out the credit.

With energy use at close to 10% of incandescents, and new technology hitting the market in real time, it’s definitely a perfect time to consider the retrofit. The benefits are so great that, even in cases where a building made the upgrade to fluorescents already, they can come out ahead. Rebates currently in place from Con Ed are available today, but these funds will eventually dry up.

LED installations yield immediate results that go right to the bottom line. The best first step is always getting the facts on your specific scenario, and for this we recommend speaking with our friends at Green Partners. George Crawford can help you navigate through any questions.