The Energy Policy Act of 2005 (EPACT) allows customers to claim a tax deduction for upgrading to certain energy efficiency equipment. Here is an example of how a retailer received a sizeable deduction for one of their distribution centers.

 

The original installation of 400W metal halide fixtures was upgraded to more efficient 4-lamp T5HO fixtures. This upgrade alone saved them $37,017 in energy costs a year.* In addition, BriteSwitch helped the retailer take advantage of EPAct, which enabled a one time tax deduction of $60,332.

 

With the EPAct tax deduction, the payback period of the project was reduced to approximately 1 year.

 

 

Click here to learn more about EPAct.

 

 

 

*Based on $0.155 per kWh and 4,680 annual operating hours.
**Deduction amount is capped at project cost of the upgraded lighting system. The calculations shown are for illustration and educational purposes only. Consult your tax professional for further guidance on tax laws and to advise on the net tax impact.