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REBATES & TAX DEDUCTIONS: WHAT YOU NEED TO KNOW

It is universally understood that saving money, however we do it, is the primary objective when making financial decisions that impact our future. In the lighting world, this objective is no different. In our industry, the introduction of a fixture simply isn’t good enough. We need to prove to building owners that the lighting systems we promote are not only cost-effective, but energy-efficient. As consumers, we need to be convinced that our purchases will save us money today, tomorrow and for the years ahead.

 

Here at Boston Light Source, we are mindful of the energy crises we face today. Our manufacturers are constantly providing new lighting technologies designed to keep maintenance and energy costs down for all building owners. To provide additional value, we are further educating the consumer on how to take advantage of available funds for new construction projects or for the renovation of existing facilities.

 

There are two programs in place that offer financial incentives for qualifying customers that install new lighting systems. The first program, introduced by Congress early last year, is EPAct 2005 (Energy Policy Act of 2005). The financial incentives are realized in the form of a tax deduction. As defined in the provided link (http://lightingtaxdeduction.org/): “The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap. This website, developed by the Lighting Systems Division of the National Electrical Manufacturers Association (NEMA) in cooperation with the Commercial Building Tax Deduction Coalition, provides education about the lighting aspects of the Deduction and resources to help with its implementation. It was created as the first of a series of lighting education initiatives by the lighting industry addressing lighting quality and efficiency.” Additional information, including qualifying customers and eligibility requirements, can be found on http://www.lithonia.com/Energy/TaxDeductions/default.asp.

 

The second program is actually a collection of programs that are specific to the project at hand. Rather than a tax deduction, these options have financial incentives that come in the form of a rebate. For example, Massachusetts customers with intentions of renovating an existing facility can take advantage of National Grid’s “2006 Energy Initiative Program”. Eligibility requirements can be found on the following website: http://www.nationalgridus.com/masselectric/business/energyeff/energyeff.asp For new construction applications, National Grid’s “2006 Design 2000plus Program” would be appropriate. Eligibility requirements can be found on http://www.nationalgridus.com/masselectric/business/energyeff/5_light.asp NStar Electric is another utility that offers rebates that can be more applicable to your project. Varying programs, also found on http://www.nstaronline.com/your_business/ee-forms.asp, include Commercial, Industrial, Performance, and Indirect Low Glare lighting. Using the above links, building owners, in conjunction with a tax consultant and/or the available utility incentive programs, can learn of a variety of methods that allow them to reduce energy and costs with the installation of new lighting systems. With these new systems in place, owners will see the results where it counts: in the bottom line.