Is The End Near For Valuable EPAct Incentives?

The Energy-Efficient Commercial Building Deduction was created by the Energy Policy Act of 2005, in recognition of the fact that a substantial portion of U.S. energy consumption is attributable to commercial buildings. The law provides a robust tax deduction to help offset the cost of energy efficiency projects.

Since it’s inception of 179D it has assisted thousands of building owners increase profitability. It has also increased job creation in the electrical trades, where energy-efficiency retrofits create large numbers of high-paying jobs, while simultaneously reducing our nation’s dependence on foreign oil and thereby increasing America’s energy security.

Potential clients planning energy efficiency projects should circle Dec. 31, 2013 on the calendar. Under current law, that’s the last day that a project can be put in service and qualify for tax deductions under EPAct — the Energy Policy Act of 2005. EPAct tax deductions, also known as Section 179D deductions, for LED lighting alone that can be .60 per square ft. of retrofitted space.

It’s possible that Congress will decide to extend the deductions into 2014 and beyond, but given the concern over deficits in Washington, commercial clients who can get a project into service by the end of 2013 might be wise to do so.

Congress is now on its summer recess, but just before leaving, the Senate made the Energy Savings and Industrial Competitiveness Act (S. 1392) the official order of business on the Senate floor upon the members’ return on September 9th. The bill was drafted by Senators Shaheen (D-NH) and Portman (R-OH) and contains useful provisions on building codes, industrial energy efficiency, and efficiency improvements to federal facilities.

Until Washington Acts on an Extension and Modification of Deduction for Energy-Efficient Commercial Buildings, (Introduced 9/20/12 as S.3591) the EPAct 179D will sunset at the end of 2013.

As LED professionals and all professionals committed to energy efficiency, we do not want to see the program end. The clock is ticking…

Related articles

• Politicians Join The LED Movement (getleducated.com)

Politicians Join The LED Movement

For a variety of reasons politicians often avoid grass-roots movements and causes. Not so with the LED Revolution!

We don’t often think of political policies making sense, or being economically or environmentally friendly. In fact, most polices coming from local, state and the federal government many times leaves us scratching our heads.

Not so with the LED movement. Thus far, rumors that Washington would kill or limit funding on EPACT Tax Deductions (IRS-179D) have not transpired. Currently, there is legislation on the table titled The Commercial Building Modernization Act that would increase the tax deductions dramatically.

Politicians must now realize what energy conscious Americans have known for a while – that energy-efficient LED lighting is one of the quickest ways for businesses, individuals and even local and state governments to save money.

Regardless of your opinion of our President, his recent climate-change speech, which targets greenhouse gas emissions and promotes energy efficiency, may mean many “Green” days ahead for the LED industry.

Rebates and incentives from utility companies are increasing. Not from the kindness of their hearts or wallets, but due to federal programs, similar to the Renewable Portfolio Standards (RPS) already in place to grow a solar industry. Utility company’s are now creating programs to reduce the strain on our fragile electrical grid while Washington keeps a close eye.

LED technology, and ultimately sales, adds jobs to a slowly recovering economy. Electricians are retrofitting building after building to LED lamps and fixtures. LED manufacturers and suppliers are showing financial growth.

Are we close to the day when Americans thirst for energy-efficient products surpasses that for fast food? Maybe. The future looks bright for LED lighting and it may be our saving grace.

Related articles

• Is The United States Becoming More Energy Efficient? (theenergycollective.com)
• The energy efficiency standards of European LED lighting will be implemented in September (lsdfloodlightblog.wordpress.com)

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Switch To LED Lighting Today

People ask all the time “Why should I move into LED lighting now?  What ‘s the advantage to doing it now instead of waiting for a year or two for the prices to come down?”  My answer is pretty simple “Think of all the money you’ll save over the next couple of years!”

Yes, the prices of LED lamps and fixtures seem to go down all the time.  But that’s just an illusion.  The least expensive products are generic, no-brand items that aren’t what we do here at LED Source®.  We only carry the best of the best, Philips, Cree, Toshiba, Lighting Science Group, Color Kinetics, EcoSense, etc.  Our portfolio consists of the best because we’re approached daily by a myriad of LED companies and we have our pick of whom to carry.   There is no reason to carry anything else since we pride ourselves on service, product knowledge and excellence.  Only brands that can offer the same need apply here.

Our fixture pricing is pretty consistent with our vendors, so we can offer you the best price on the best products today.  If I can lower your electric bill by 30% a month by replacing your lights with LEDs and the entire job will pay for itself in less than two years, how can you afford not to switch?  There might be something bigger, brighter and better a few years down the road, but you’ll already have something awesome in your space and have saved enough money to pay for it a few times over.

LEDs are exactly like computers.  There might be something bigger, better and less expensive around the corner, but can you wait on getting one?  Generally, the opportunity cost of waiting is much greater than moving forward with the best thing available now.  As I’ve said, LED lighting is not just the future, but it’s the present.  Do your facility and yourself a favor and give LED an opportunity to save you money, time and maintenance headaches.  I assure you, the conversion is worth it.

For more information or to speak with one of our LED lighting experts, contact LED Source® at 866-900-4533.

LED Lighting Is Getting Better By The Day

We get a lot of customers who hold off on LED lighting, citing that the price will go down and that they’ll get more bang for their buck in a year or two.  Is that really true?

 

The short answer is no, it’s not.  LED lighting fixtures are like computers in that way.   Both are a solid-state technology (computer chips and LED diodes).  You’ll notice that computers always cost about the same amount, but what you get for the money changes.  You’ll get a faster; better computer in two years for the same money, but you’ll be without a computer for two years.  Does that make it a better deal?

The shift is even more radical with LEDs.  How much money would you save in a year or two using LED lamps as opposed to the other, less efficient alternatives?  In a lot of cases, you’ll save more than the cost of the lamps in that timeframe.  How much more will you enjoy the beautiful, rich lighting that you can have in your home now instead of waiting two years for lights that may or may not be less expensive?  It’s hard to quantify everything with LEDs, but the monetary savings are certainly there.  I think the other parts of this equation, the beautiful light you’ll enjoy, the maintenance free lifetime of use you’ll get, etc. far outweigh waiting it out for something cheaper.  It might not even happen.

Not only that, but there are many local, state, federal and even energy provider rebates available for LED lights these days.  In many cases, you can get back most of the purchase price of the products.  If you’re looking into LED for your home or business, contact LED Source for some insight on how to get these lamps and fixtures working for you today instead of sitting on the sidelines, waiting for something to happen.  Don’t be the one who waits for great things to happen to them, make great things happen now, and start with LED!

For more information on LED lighting, visit the LED lighting Experts at www.LEDsource.com

What Does ENERGY STAR Mean For LED Lighting

To understand what an ENERGY STAR rating is for LED lighting, we must first understand what the ENERGY STAR certification means and how it began. 

In 1992 the U.S. Environmental Protection Agency (E.P.A.) introduced the ENERGY STAR program. It was setup as a voluntary program to identify and promote energy-efficient products that reduce greenhouse gas emissions.

In 1996 the E.P.A. partnered with the U.S. Department of Energy (D.O.E.). The program was established to aid Americans in saving money and to protect the environment through energy-efficient products and practices.

In 2010, the ENERGY STAR program aided Americans saving enough energy to avoid greenhouse gas emissions equivalent to those of 33 million cars and saved almost $18 billion on their utility bills.

Many products have been ENERGY STAR certified for homes and businesses.  These include appliances, computers, TVs and other electronics, but what does an LED lighting product have to do in order to become ENERGY STAR certified?

To qualify for ENERGY STAR rating, LED lighting products must pass a variety of stringent tests to prove that the products will display the following characteristics:

• 75% less energy than incandescent lamps
• Lasts 15 times longer life span than comparable incandescent lighting
• Brightness is equal to or greater than existing lighting technologies
• Light output remains constant over time
• Excellent color quality
• Efficiency is as good as or better than fluorescent lighting

Did you know that several LED lighting manufacturers now have their lamps ENERGY STAR rated?

Recently, Toshiba Lighting received an ENERGY STAR rating on some of their LED lamps. The Toshiba lamps listed on the ENERGY STAR certified product list include select models of the MR16, PAR20, PAR30, and PAR38 models.

Philips Lighting announced that its’ EnduraLED 12.5W has met or exceeded the quality and energy efficiency requirements for a 60W LED equivalent as set forth by ENERGY STAR program. The lamp lasts 25 times longer and uses 80% less energy than a 60W incandescent bulb. The Philips EnduraLED meets or exceeds the ENERGY STAR specifications with 806 lumens, 2700K, a CRI of 80 and a 6-year warranty.

Cree is another LED manufacturer that has qualified for the ENERGY STAR rating for its’ LR4, LR5 and LR6 LED downlights.

There are many different LED lamps on the market today, some of which do not meet the standards as set forth by the ENERGY STAR program. When shopping for an LED lamp for your next project, check and see if the ENERGY STAR logo is on the package.

For more LED lighting information, contact the LED lighting experts at LED Source® at 866.900.4LED.

What’s all the hype about Energy Rebates?

Did you know that you can change your lights to LED and in addition to saving 50 to 80 percent on your utility bill each month, you can get more money back on top of your saving to help pay for your new lighting?

It sounds unbelievable, but it can happen with energy rebates. These incentives offered by the state as well as local utility companies put cash in your pocket for transitioning to energy-efficient appliances in your home. The funny thing is, very few people actually take advantage of this.  In fact, one of the things I could never understand in the many years I have been involved in the energy conservation world is why it was so hard to convince someone to take advantage of their rebates and savings! We are so brainwashed to believe everyone telling us something ‘too good to be true’ has to be a scam that we miss out on some of the easiest ways to save money, especially during tough economic times.

Rebates are available in many forms. There are federal tax credits, city and community rebates, manufactures rebates and utility rebates. Because there are so many different rebates available, it would be impossible for me to explain all of them in detail but I will give you enough information to help you navigate through the rebate waters on your savings rowboat.  But it will be up to you to stroke the oars, so here we go!

When it comes to federal tax rebates, a tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343). Now this act can take days of reading over and over again to fully understand it so I am going to keep it simple and applicable to Commercial Building Lighting.

The Interim Lighting Rule is a slide scale that ranges from 25% of savings for a $.30 per square foot tax cut all the way to a maximum of 40% of savings for a $.60 per square foot tax cut. Warehouses must achieve a 50% reduction in power in order to qualify for a $.60 per square foot tax credit. So generally if you convert your lighting to LED which normally saves 50% or more you may be eligible for a $.60 per square foot tax credit.

Utility and local rebates vary drastically so it would be difficult for me to explain every rebate in every state but check out www.dsireusa.org. This website lists all the rebates available in your state.

I am sure you too will be impressed and amazed at all the rebates available. So what are you waiting for? You have budgets to cut this year so why not start with your lighting, the easiest and quickest way to save and get money back from Uncle Sam!