Tax incentives and loan guarantees make energy efficient upgrades financially viable.
The Energy Policy Act of 2005 (Pub.L. 109-58) was passed by the United States Congress on July 29, 2005, and signed into law by President George W. Bush on August 8, 2005. The act isas an attempt to combat growing energy problems, changing US energy policy by providing tax incentives and loan guarantees for energy production of various types.
?The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.
For years, energy-efficient lighting solutions have been available that can reduce lighting energy costs while maintaining or potentially improving lighting quality. According to the Energy Cost Savings Council, energy-efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. Due to energy codes and its economic advantages, energy-efficient lighting is now a common feature in new construction; lighting is generally considered the easiest, most profitable investment in energy-saving building systems.
According to the Department of Energy, however, only 20% of existing commercial buildings feature some degree of upgraded lighting technology, while 80% continue to operate lighting systems installed before 1986. The reason typically given is initial cost of changing out an older lighting system and replacing it with a newer one. Energy-efficient lighting typically costs more to purchase and necessitates skilled labor for its installation.
The Energy Efficient Commercial Buildings Tax Deduction was created to enhance the financial attractiveness of investment in the most energy-efficient lighting and other building technologies.
Missouri Incentives / Policies for Energy Efficiency
Illinois Incentives / Policies for Energy Efficiency |
