Tax Deductions for LED Lighting

led-cash-003Everyone knows the LED lighting is bright and beautiful.  Every also knows that LED lighting is cost-efficient. But did you know that you can get a tax deduction as well. For all you business owners, this is just another in a long list reasons why you should upgrade to LED lighting today.

Commercial buildings, apartment complexes, supermarkets, warehouses, hotels, just about any type of business you can imagine, qualify for federal tax deductions under the Energy Policy Act of 2005, Section 179D, the Commercial Building Tax Deduction.


Going Green means Green Deductions

That’s right.  Going green and helping the environment now means you can put some more of the green stuff, cash, in your pocket now by taking these tax deductions. Investing in LEDs for your business may still be a bit costly, but it’s good to know that you can get back part of your investment right away.

Section 179D lets businesses take a tax deduction for the cost of installing energy-efficient LED lighting systems. Your lights need to reduce the overall energy that is used in your business offices by at least 25%. If you are making the switch to LED lights for a warehouse, they must reduce the energy by at least 50%.

Once your new lighting system is installed, you will need to schedule an inspection from an engineer, contractor or lighting professional to measure and certify your true energy savings using special computer software.