EPAct 2005 Tax Deductions – Time Is Running Out

Many businesses have implemented energy efficiency measures in their facilities over the past several years to help decrease operating expenses and aid the local and global environment. What a lot of these companies do not know is that sizeable federal tax deductions are available to them and also that time may be running out.

The Energy Policy Act of 2005 (EPAct 2005) provides generous, immediate tax deductions to businesses for making energy efficiency improvements to their buildings. The federal tax incentives center mainly on efficiency improvements to lighting, HVAC and building envelopes and can be as large as $1.80 per square foot.

The Emergency Economic Stabilization Act of 2008 extended Section 179D and EPAct 2005 so the act will not expire until December 31, 2013. However, that does not mean that time may not be running out for some companies.

For businesses that implemented energy efficiency projects in 2006 it is probable they filed their tax returns before April 15, 2007. If they were unaware of the deductions at that time, they are now at risk of losing those tax deductions forever since the IRS only allows a three year period to amend tax returns.

That means if you have not yet amended your 2006 tax return you have only a few months left to do so!

As an electrical contractor working with commercial and industrial customers you certainly have been thinking about ways to increase your sales and likely how to better utilize your current book of business to that end. You have also most likely been approached by your current customers asking what they can do to reduce their energy costs.

Have you thought about a strategic partnership with an experienced engineering firm that specializes solely in turnkey, energy cost reduction projects on a national level? One that can bring whole facility energy solutions to the table for you and your customers? A company that can provide a fast payback and increase cash flow for your customer?

Bringing in such a company will grow your business as you will be the one who is sub-contracted by the engineering firm to provide the installation services under their management and direction. You can use this approach over and over again with all of your customers and doing so will not only increase your revenues exponentially, it will also transform your customers’ impression of you from simply another vendor to that of a valued consultant.

Save Money On Your Company’s Energy Bill, visit Energy Edge Technologies site for strategies on saving a tremendous amount of capital on your Corporate Energy Bill or call 888-729-5722 Ext. 100.

Go Green” To Increase Revenues and Profits

Reducing utility costs is good for the bottom line but there are many other financial benefits to reducing energy consumption.

The US Green Building Council tells us on average a “green building” benefits from:
- 30-50% reduced energy use
- 35% reduced carbon emissions
- 40% reduced water use
- 70% reduced solid waste
So what does that really mean in real value to a business or property owner in terms of value beyond lower utility costs? The following include brief facts illustrating some other, demonstrable benefits of “going green”.
PR Opportunities:
Improving how energy efficient your facility is:
- Protects global resources
- Decreases pollution and emissions generated during the energy production process
- Protects the environment
- Reduces solid waste
Improving the efficiency of your facility:
- Provides you the ideal opportunity to gain constructive, no cost publicity
- Allows you to represent your business in a positive light
- Gives your local community and your marketplace a depiction of your company as a responsible steward of the environment.

Considerable Economic Benefits:

In addition to reducing your energy costs, “going green”:

- Reduces maintenance, replacement and production downtime costs via longer life expectancy of the different loads ranging from lighting systems to HVAC systems to production equipment

- Increases the asset value of the property and enhances profitability

- Improves tenant attraction and retention for building owners and leads to higher
premium tenants and higher-end leases

- Demonstrates the strength and intelligence of your executive team and attracts
clients and investors

- Improves worker productivity and safety and reduces absenteeism and turnover via
improved lighting and indoor air quality and comfort. According to the US Green
Building Council, “green buildings” save $58 billion of sick time and add $180
billion in increased worker productivity annually.

In the end, the decision by a company or organization regarding improving energy efficiency will be based for the most part on cost effectiveness measures such as rate of return on the investment or project cost. Nevertheless, it would be prudent to acknowledge and consider the other aforementioned considerable benefits of “going green” as a part of the decision making process.

Save Money On Your Company’s Energy Bill, visit Energy Edge Technologies site for strategies on saving a tremendous amount of capital on your Corporate Energy Bill or call 888-729-5722 Ext. 100.