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LED lights may be expensive but they’re one of the most adequate possibilities for obtaining the 179D tax credit. We’ve already discussed how different lighting projects can be executed under the EPAct 179D requirements. In this post, we’ll take a closer look at LED lights and the possibilities they provide.
Tax Deduction
Section 179D provisions envision a tax credit of up to 1.8 dollars per square foot of commercial building construction. The total amount can be obtained if three kinds of energy efficiency projects are executed – lighting, HVAC and building envelope.
If you decide to opt solely for the installation of energy efficient LED lighting, you will qualify for a partial deduction under EPAct 179D. This partial deduction can reach up to 0.6 dollars per square foot of commercial building area.
To take advantage of the deduction, the constructor, designer or investor must opt for third-party certification. The certification company has to establish that the lighting improvement has resulted in significant energy consumption reduction, as compared to a similar commercial building.
Why Opt for LED Lights?
The use of LED lights for EPAct 179D incentive qualification has been gaining more and more popularity. Apart from making it easy to benefit from the incentive, the selection of such lighting systems will make the commercial spaces more attractive because of the energy efficiency results these deliver.
LED lights are more expensive than other energy efficient options on the market but they also happen to be tremendously durable and they tend to last longer than fluorescent lights. The LED lights feature cool operation and they are mercury-free.
This kind of lighting comes with zero UV emission. The LED bulbs produce only a small amount of infrared light. Since there’s no UV light, the LED bulbs can be used in places where UV-sensitive objects are found. Such places could include museums, art galleries or archaeological sites.
The use of LED lighting enables significant design flexibility. Individual LED lights can be used at points of interest and a number of lights clustered together will provide the perfect work area illumination. The color and distribution of light are also easy to control, which enables flexibility and the creation of the perfect workplace conditions in a commercial space.
LED lighting comes with a vast range of additional advantages that include:
- More light efficiency and since light is highly focused
- Very silent, especially when compared to the noisy fluorescent light bulbs
- A vast range of colors, which makes LED lights suitable for all purposes
- Instant lighting (again, in comparison to fluorescent bulbs)
- Low voltage power will be sufficient to light the LEDs
- Not affected by low temperature, which makes them suitable for outdoor use, as well
Where LED Lights can be Used in a Commercial Building
To benefit from the EPAct 179D incentive, it’s imperative to come up with a good plan for the creation of an energy efficient lighting system.
LED lights are perfect for use in commercial building garages where they can reduce the electricity consumption significantly. The 24-hour operation of many commercial garages leads to significant electricity costs associated to lighting.
The same applies to retail spaces, hallways and reception areas. Restaurants and dining areas will also benefit from the selection of the LED lighting possibility.
Constructors and designers of commercial spaces should think about efficiency, practicality and EPAct 179D qualification when coming up with architectural and construction plans. LED lights are a great possibility for making commercial spaces more attractive and reducing their energy consumption significantly.
Steve Nanos
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- LED Lighting – A Great EPAct 179D Qualification Possibility - February 3, 2015
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- Can Section 179D Incentives Help Businesses Save a Lot of Money? - January 27, 2015
