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KSM Blog | Katz, Sapper & Miller CPA

Improve Building Performance with Lighting Retrofits

Posted 4:24 PM by

Section 179D of the Internal Revenue Code provides a valuable financial incentive to business leaders seeking to improve the energy efficiency of their buildings. Named the Energy Efficient Commercial Buildings Deduction by code, and commonly referred to as the EPAct deduction (after the law that created the incentive), this incentive provides a deduction of up to .60 per square foot for improvements to lighting systems. New lighting systems must satisfy certain energy efficiency criteria to qualify for the deduction.

While this deduction is valuable in itself, the long term benefit to business is that it serves to finance the installation of energy efficient lighting.  Highly efficient lighting has the proven potential to save companies thousands of dollars each year in electricity costs, thus improving profitability. Manufacturers, warehouses and high-square-footage facilities are good candidates for this incentive.

For companies in the Indianapolis area served by Indianapolis Power & Light, additional funds to underwrite the switch to energy efficient lighting may be available through IPL's new Business Energy Incentives program.

For consulting on strategies to improve the return on investment in energy efficient lighting, or help in obtaining IRS-required certifications of new lighting systems, contact Chris Bradburn at 317.580.2140 or cbradburn@ksmcpa.com.

About the Author
Christopher Bradburn is a director in Katz, Sapper & Miller's Real Estate Services Group. Christopher leads the firm's cost segregation practice. He also provides accounting and tax support for a wide variety of practices. Connect with him on LinkedIn.

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