Reduce Your Electric Bill
Jun 26, 2013
Business owners are always looking for a way to minimize operating costs without compromising work production. Among the unavoidable expenses all businesses incur is the cost of electricity. Did you know that lighting alone can comprise as much as 60% of your electric bill each month? So what can you do about the costs given the fact that you need to turn the lights on every day, open to close?
Recently, the department of energy mandated that when many of the most common, inefficient light bulbs in service today become obsolete, they must be replaced with more energy efficient products. Fluorescent lighting that is often used in common areas and offices as well as warehouse lighting, known as metal halides, are among the items that are being replaced.
Here is where the opportunity to improve your bottom line comes into play. Businesses will be required to upgrade their lighting when the time comes to purchase replacement lamps or ballasts. But why wait? Every day that the old technology is kept in service is a day that you are spending more on energy than you need to. And here is the good news – most utility companies will actually pay you to make the change! You read that correct – you can reduce your energy cost, improve your overall lighting and have the utility company pay for a portion of the upgrade.
The news gets better. Thanks to legislation knows as EPACT 2005, there are also favorable tax incentives available for qualifying projects before December 31, 2013. A tax deduction of 30 cents up to a maximum 60 cents per square foot for lighting is available with the wattage reductions between 25% to 40% from ASHRAE 90.1-2001 levels. This is an accelerated tax deduction: If a cost item associated with installing new lighting is normally depreciated and claimed over a period of years, it can now be claimed in a single tax year.
Contact us to learn more about our accounting advisory services
Sign Up for Email Updates
Accounting & Financial News
Are You Using the Right Accounting Method for Your Business?
The accounting method you currently use for your small business may no longer be appropriate due to…