2021 Tax Credits for LED Lighting

As of December 2019, Congress passed a budget agreement that extended the tax energy extenders, including the Energy-Efficient Commercial Buildings Deduction (179D) through December 31, 2020. Once the year ends, these extensions end with it, limiting the rebate options you receive for switching your lighting systems over. Better energy savings start today with Lighting Solutions.

Commercial Building Tax Deduction

Congress has emphasized green building and energy independence initiatives over the last few years, incentivizing businesses to help themselves and the environment. 179D was initially passed in 2005 as part of the Energy Policy Act, which was a response to the energy usage and independence concerns seen across multiple industries. Buildings account for almost two-thirds of the U.S.’s energy consumption, with half of that coming from commercial buildings

With standard lighting systems, businesses are spending more energy and money to keep their buildings well-lit. From interior lighting to external systems, lights keep your business running smoothly. 179D helped incentivize enterprises to switch over to LED systems, saving you money and reducing your electrical use. If you qualify, you receive an up to $1.80 per square foot tax deduction. Any accrued tax deductions from these buildings can be carried back two tax years or can be carried forward for up to 20 years. 

Tax Incentives For LED Lighting

A 179D tax deduction lowers your monthly energy exponentially, no matter the size of your building. This energy tax credit only applies until the end of the year. Once the time is up, there will be no additional tax incentives for switching to LED. Although this will lower the money saved, switching to LED already ensures that you’ll be spending less on your power bill each month. An office building has the lights on constantly, so having a lighting system that takes less electricity to power and maintain is already lowering your power bill. 

Taking advantage of energy-efficient improvements will ensure you have the benefit of reduced energy use and a lower energy bill, with a tax incentive to top it off. Section 179D may be ending, but your benefits are just beginning. 

Qualify While You Can

There are different requirements behind the 179D qualifications. Building owners and lessees qualify based on the building they have, which includes:

  • Apartment Buildings of at Least Four Stories
  • Industrial Buildings
  • Office Buildings 
  • Retail Buildings
  • Warehouses

Additionally, eligible designers and builders qualify under a special rule for public property. It doesn’t end with personally-owned buildings, as government-owned buildings at a federal, state, or local level qualify as well. These include: 

  • Airports
  • Courthouses
  • Schools
  • State Universities
  • Government Offices
  • And More

Many different commercial and government buildings qualify for 179D, yet haven’t made the switch. Now is the best time to make a change for the better, not just for your company but also for the environment. LED lights are the safer, greener alternative that puts money back in your pocket while protecting the world. 2020 is the perfect year to make a fresh start and save big while you still can. 

Lighting Specialists

Lighting Solutions offers a wide variety of LED lighting products and services, making your workplace safer and brighter. Whether you need indoor or outdoor lighting, we have the solutions you’re looking for. We can walk you through the benefits of LED over other lighting solutions, highlight the advantages that LED brings to your business, or start the process off immediately. With 2020 being your last chance for LED tax incentives, your lighting and energy budget should be a high priority. 

When you rely on Lighting Solutions, you rely on the best in the business. We provide you with lighting solutions that save you money and energy right away while ensuring that everything is installed correctly and properly maintained. Now is the perfect time to switch over to LED lights. Take advantage of the 179D tax incentives while they last. It’s time to make a difference in your energy efficiency. Contact Lighting Solutions today and start making a change for the better.