Lighting represents up to 40% of your
electricity bill.  Motors and HVAC another  40%
Commercial Electrical Use by Technology.

of buildings have lighting systems installed pre-1986.

of buildings have some level of upgraded lighting technology.

Fact: most buildings use outdated and inefficient lighting systems.

 

Rising energy prices, coupled with provisions of the Energy Policy Act of 2005 (EPAct05), are prompting maintenance and engineering managers to look for new ways to reduce lighting energy costs. Provisions of the EPAct05 have opened new opportunities in the lighting arena by creating incentives for organizations installing new or retrofit lighting projects.

To help organizations qualify, managers will need to take a closer look at their facilities� lighting needs, as well as the products and technology to help meet those needs.

The financial bottom-line
EPAct05 provides a number of important incentives to reduce energy costs. The most important part of EPAct05 for institutional and commercial buildings is section 1331, which provides a tax deduction up to $1.80 per square foot (psf) for a building using 50 percent less energy than one designed to comply with ASHRAE 90.1-2001.

Lighting and HVAC systems and the building envelope each receive a deduction of $0.60 psf for their contribution to the 50 percent savings. The provision applies to qualifying new construction, renovation and retrofit projects put in service from Jan. 1, 2006, to Dec. 31, 2007.

The U.S. Treasury Department has yet to issue regulations for the whole-building deduction, but the act provides interim rules for lighting systems. Unless and until the department issues a different final rule, the law specifies that organizations can deduct $0.30 psf, provided the system:

� employs dual switching, which is the ability to switch off roughly one-half the lights while maintaining fairly uniform light distribution

� reduces installed lighting power by at least 25 percent from levels specified in tables in ASHRAE Standard 90.1-2001.

Systems can qualify for a deduction of $0.30-0.60 psf for savings in lighting power density (LPD) � measured in watts per square foot (w/sf) � of 25-40 percent, respectively. The deduction is linear between $0.30 and $0.60, and managers can calculate intermediate values by interpolation.

As EPAct05 is written, the LPD for existing systems does not matter. What matters is how much it can be reduced compared to the ASHRAE 90.1 2001 standards.
 

Source: DOE/EIA

HVAC, Lighting and EPAct 2005

Tax breaks add to your incentive to reduce energy costs!

EPAct 2005 provides attractive tax incentives to address energy inefficiencies in your current lighting and HVAC solutions. These incentives can mean that efficiency upgrades will pay for themselves faster than ever - often within 3 years or less. There may never be a better time to make your air handling and lighting solution more energy-efficient.

A number of important lighting-related measures have been established and outlined in EPAct 2005, including:

Energy-Efficient Upgrades

To make the most of the two year window for taking advantage of tax deductions for energy-efficient upgrades provided by EPAct 2005, you need to understand what is available to you. EPAct offers two kinds of tax deductions:

  • If you upgrade your lighting, HVAC/hot water, and building envelope to surpass the ASHRAE 90.1-2001 standard by 50%, you can take a one-time whole building tax deduction of up to $1.80 per square foot.
  • Upgrading any one of your systems (lighting, HVAC, or building envelope systems) to surpass the ASHRAE 90.1-2001 standard by 25-40%, can bring you a significant tax deduction. Under EPAct 2005, this is known as a partial deduction.

Either way, you can significantly reduce the cost of your energy-efficient upgrades. For example, a building with 100,000 square feet of applicable energy-efficient improvements would see a $180,000 tax deduction from the whole building route.

You will need to determine whether a whole or partial deduction method best suits your needs�� and achievable by the December 31, 2007 deadline.

Let us show you why your lighting and compressors should be the first place to look to take advantage of EPAct 2005 tax deductions.

 
Reducing facility operating costs, providing tenants with the proper work environment, maintaining a safe building, and minimizing maintenance calls and disruptions to tenant operations are all critical to maintaining your commercial facility. Don't overlook the role that lighting and EPAct 2005 can play in helping you achieve these goals.

We can show you how to:

  • Identify the lighting systems you need to reduce your energy consumption costs
  • Analyze HVAC equipment and recommend installation of Powerboss to increase compressor energy efficiency thus adding lifespan to existing
  • Take advantage of new tax breaks for exceeding new energy standards
  • Install reliable lighting that will reduce the need for time-consuming replacements by your maintenance staff
 

HVAC, Lighting and EPAct 2005
 
Let us show you why your motors, lighting and HVAC should be the first place to look to take advantage of EPAct 2005 tax deductions.
 
Reducing facility operating costs, providing tenants with the proper work environment, maintaining a safe building, and minimizing maintenance calls and disruptions to tenant operations are all critical to maintaining your commercial facility. Don't overlook the role that lighting and EPAct 2005 can play in helping you achieve these goals.

We can show you how to:

  • Identify the lighting systems you need to reduce your energy consumption costs
  • Analyze HVAC equipment and recommend installation of Powerboss to increase compressor energy efficiency thus adding lifespan to existing
  • Take advantage of new tax breaks for exceeding new energy standards
  • Install reliable lighting that will reduce the need for time-consuming replacements by your maintenance staff


 
 
   
 
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