With the ever-changing tax environment, you’ve probably considered taking advantage of breaks for your business when it comes to upgrades in technology and energy efficiency. You may have decided to wait, considering the advances in efficiency would only get better with time. However, with new 2018 tax laws in place, if you haven’t made the move to LED technology, now is the time. So, what’s changed that makes it more beneficial for your business now?
- Interest rates are historically low, meaning more surplus cash to invest into your organization’s operations.
- You’ve had a piece of equipment down for weeks that needs replacing, but you don’t have it in the budget to replace it. Upgrading your facility to the latest LED technology could provide you with enough surplus cash to replace other existing operational needs. With a lighting energy audit, Lighting Solutions can find the most cost-effective changes to make in your facility, so you can use your savings on more pressing needs.
- Tax write-offs for equipment have increased to $1 million.
- Maybe you’ve already considered making the switch to LED, but you have other financially pressing matters. With equipment depreciation deductions being increased for the tax year, your business could take advantage of the lasting benefits of LED lighting for years to come. An average commercial building will see a return of $200,000 in their first year with LED upgrades.
- Pass-through businesses are now eligible for a 20% deduction.
- With over 90% of businesses in the U.S. claiming pass-through income, this added benefit could offset your higher federal tax rates. Taking advantage of this deduction by finally making energy-efficient, LED upgrades to your building means lower utility bills, better working conditions for your employees, and reducing your business’ carbon footprint!
- The corporate tax rate has been lowered to 21% and will remain in effect until 2025.
- Those businesses not claiming pass-through income will also see the added benefit of a lower corporate tax rate. This 14% drop in taxes from 2017 means more in your budget for a planned LED upgrade to your facility. With improved efficiency, less waste, and less energy, what are you waiting for?
Take advantage of these tax incentives while you still can and call Lighting Solutions for your lighting energy audit!