Energy Star Lighting

On average, lighting represents 40% of the average commercial building's electric bill, followed by motors and HVAC equipment (40%) and other equipment including copiers and computers (20%). On average, energy efficient lighting projects have a 45% return on investment and pay for themselves in 2.2 years. Despite advancements in lighting technology, business owners have been slow to retrofit lights in existing buildings. Therefore, the Energy Efficient Commercial Buildings Tax Deduction (CBTD) was created to enhance the financial attractiveness of energy efficient lighting technologies.

This special tax deduction allows building owners (or tenants) to write off the complete cost of upgrading a building’s indoor lighting, HVAC/hot water and building envelope in the year the new equipment is placed in service, capped at $1.80/sq.ft. Alternately, the owner (or tenant) could upgrade one of these three systems to earn the CBTD capped at $0.60/sq.ft. In short, with the CBTD, the cost of new lighting or other building systems can be claimed in a single tax year instead of amortized over a period of years.

The CBTD can be claimed for qualifying projects completed before January 1, 2014.

For More Info: Commercial Lighting Tax Deduction