Rebates, Rebates, Rebates.....
One of the most common questions we get on our blog, "Are there rebates available for my project?". This article will focus on the types available and hopefully point you in the right direction so you can see if your project will qualify.
States, utilities and a few local governments offer rebates to promote the installation of renewable energy and energy efficiency projects. Most rebate programs that support energy efficiency are administered by utilities. Rebate levels typically vary by technology.
Green buildings are designed and constructed using practices and materials that minimize the impacts of the building on the environment and human health. Many cities and counties also offer financial incentives to promote green building.
Personal Tax Incentives
Personal tax incentives for installing energy efficient lighting include income tax credits and deductions. Many states offer these incentives to reduce the expense of purchasing and installing renewable energy or energy efficiency systems and equipment.
The percentage of the credit or deduction varies by state, and in most cases, there is a maximum limit on the dollar amount of the credit or deduction. An allowable credit may include carryover provisions, or it may be structured so that the credit is spread out over a certain number of years.
Eligible technologies vary widely by state. In recent years, the federal government has offered personal tax credits for renewables and energy efficiency.
Property Tax Incentives
Property tax incentives include exemptions, exclusions, abatements and credits. Most property tax incentives provide that the added value of a renewable energy system is excluded from the valuation of the property for taxation purposes.
In a few cases, property tax incentives apply to the additional cost of a green building. Because property taxes are collected locally, some states have granted local taxing authorities the option of allowing a property tax incentive for renewables.
Corporate Tax Incentives
Corporate tax incentives for installing energy efficient lighting include tax credits, deductions and exemptions.
These incentives are available in some states to corporations that purchase and install eligible renewable energy or energy efficiency equipment, or to construct green buildings. In a few cases, the incentive is based on the amount of energy produced by an eligible facility.
Some states allow the tax credit only if a corporation has invested a minimum amount in an eligible project. Typically, there is a maximum limit on the dollar amount of the credit or deduction.
In recent years, the federal government has offered corporate tax incentives for renewables and energy efficiency.
Loan Programs To Finance Improvements
Loan programs provide financing for the purchase of renewable energy or energy efficiency systems or equipment. Low-interest or zero-interest loans for energy efficiency projects are a common demand-side management (DSM) practice for electric utilities.
State governments also offer low-interest loans for a broad range of renewable energy and energy efficiency measures. These programs are commonly available to the residential, commercial, industrial, transportation, public and/or non-profit sectors.
Loan rates and terms vary by program; in some cases, they are determined on an individual project basis. Loan terms are generally 10 years or less.
In recent years, the federal government has offered loans and/or loan guarantees for renewables and energy efficiency projects.
What About Leasing?
Most business owners work to save as much money as possible during the startup of their business. Financing your lighting projects though our leasing partners is also available.
Leasing allows businesses to recognize the immediate energy savings without having to pay the full cost upfront. By leasing your LED lighting package you will endure less initial costs than if you were to make full purchases but still get the products you need.
Although not right for everyone, leasing to own is a good alternative. Payments are often offset by the energy and maintenance savings and the full cost of leasing lighting is generally deductible from taxable income.
You can apply for leasing credit online and have a decision within 24 hours by clicking here. This is an application for leasing available through our manufacturer, Genesis Lighting Solutions.
It is best to consult your Accountant, Tax adviser and most importantly your local energy company to review potential lighting rebates or tax incentives, for your business, prior to fixture installation.
Information You Will Need To Apply For Rebates and Financing
Don't overlook the fact that you have to have a real project. The entities providing the funding want to know you have a legitimate project.
When applying for rebates most energy providers require pre-authorization and approval of the project. Coordinating your lighting requirements through Hovey Electric will ensure that you are prepared well in advance and have the below information ready to submit to your energy provider or tax adviser.
A. Location information:
- Owners name & store/facility number
- Facility address with zip code
- Electric utility provider and kWh rate including the miscellaneous transmission charges
- Square footage of facility
- Operating hours
B. Project information:
- Estimated construction start and end dates
- Details of existing lighting system conditions
- System size, lighting fixtures, type, quantity, # of bulbs, wattage of bulbs, etc.
- Kilowatt hour or watt demand
- System run time
- Details of proposed system
- System size, lighting fixtures, type, model numbers and quantity
- Equipment cut sheets or technical data sheets
- Anticipated kilowatt or watt demand
- System run time
- Detailed energy savings calculations
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