Do you want to upgrade the energy efficiency of your stores, but are worried about the costs? Maybe you can get some financial help. Both the government and Indiana electric companies offer tax incentives and rebates to help businesses pay for energy efficient lighting and store designs. By taking advantage of these programs, your store(s) can go green while still having plenty of money left over for the future.
Deduct the Cost of LED Lighting for Retail Stores
If you are considering switching to LED lighting for retail stores, there is currently a great tax deduction available for your business. In 2005, the government launched the 179(d) tax deduction that allows businesses to deduct the cost of envelope, HVAC, and lighting improvements that will end up saving energy. This is an upfront deduction so you can deduct the entire cost of renovations this year; you don’t have to spread the deduction over many years.
For your LED lighting to qualify, it needs to reduce your store’s lighting density by 25 to 40 percent. On its own, energy efficient LED lighting pays for itself in energy savings over just a few years. By taking the sizable 179(d) tax deduction, this upgrade makes even more sense. Do you need time to think about it? Make a decision soon because this deduction expires at the end of 2013 and there is no guarantee it will renew.
Tax Credit for Installing Renewable and Energy Efficient Products
The federal government also offers a tax credit for many renewable and energy efficient products. With this upgrade, your business can buy energy saving devices like a solar energy system, a natural gas furnace, reflective shingles for the roof, and Energy Star approved windows, insulation, and doors.
The government gives you a tax credit for 30% of these costs up to a maximum of $1,500 a year. This is a great deal because it’s a tax credit, not a deduction. That means each dollar you receive through this credit is a dollar less your company will spend to pay taxes. This credit lasts until 2016, so if you plan your spending correctly, you could receive this credit for several more years.
The Duke Energy Efficiency Rebate Program
Do your stores get their power from Duke Energy, one of the largest suppliers in Indiana? Then another way to help pay for energy efficient lighting and heating for your stores is through the Duke Energy rebate program. Duke Energy wants to encourage its customers to upgrade to better technology to reduce energy waste.
With this program, Duke sends your company a rebate check to offset some of the cost of an upgrade. You could get anywhere from $12 to $125 back in a rebate depending on the type of upgrade you made and the type of lamps you replace. You can handle the installations yourself, but will need to contact Duke Energy and have them inspect the change before you will get the rebate. If you are serious about going green, have Duke Energy help pay for the switch.
Having your business go green makes financial sense for the maximum energy savings possible. When you add in these extra rebates and tax incentives, the numbers look even better. Upgrade today and do your business and the environment a favor.
Creative Commons Attribution: Permission is granted to repost this article in its entirety with credit to Retail Lighting and Design with a clickable link back to this page.