What is the 2005 Energy Policy Act?
The 2005 Energy Policy Act regulates and mandates minimum efficiency regulations and provides tax incentives for lighting retrofit projects
EPAct Tax Deduction Extended through 2016! - The 2015 Tax Extenders bill extended the energy-efficient commercial buildings deduction retroactively for projects completed through December 31, 2015 as well as extending it for any lighting retrofit project completed in 2016. Energy efficiency projects completed in 2016 must exceed the more stringent building energy code requirements in ASHRAE/IES 90.1 2007 vs. the 90.1-2001 standard referenced previously.
- Energy Savings Modeling and Inspection Guidelines for Commercial Building Federal Tax Deduction (PDF | 1.5 MB)
- NEMA Guidance on EPAct Commercial Building Tax Deduction Certification Letters (PDF | 76 KB)
- Access our Lighting Toolkit - This collection of calculators can demonstrate the cost-savings of lighting system updates.
What is the benefit to my business?
Energy efficiency is a national concern and the commercial building tax deduction provides a tax incentive by allowing a building owner to greatly accelerate the depreciation of an investment in an energy efficiency lighting system which will reduce taxable income in the year the project is placed into service. In addition to reducing federal taxes, building owners can also reduce electrical bills and maintenance costs by updating building lighting systems to the latest LED technology. Lighting retrofits also display a company's commitment to environmental stewardship by reducing electrical use which also reduces Carbon emissions from power generation.
What is the value of the tax incentive?
For lighting system upgrades, building owner deductions are applicable at a rate of $.30 to $.60 per square foot if the lighting power density is 25% to 40% below ASHRAE/IESNA 90.1 watts per square foot levels.
Who can I contact for more information?
For more information, contact your local lighting sales office.