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| October
2007 |
Electric
Control Services Newsletter |
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Tax
Incentives for Energy Saving Equipment
In this
issue we will point you to two important tax incentives for
energy saving equipment. The first tip is concerned with Section
179, which coupled with a lease program has many advantages.
The applicability of Section 179 is not restricted to energy
saving equipment.
The second
tip deals with The Energy Act of 2005 and is energy specific.
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Section
179 |
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Depreciate
up to $108,000 over one year! |
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 Typically,
if property for business has a useful life of more than one year,
the cost must be spread across several tax years as depreciation with
a portion of the cost deducted each year. But there is a way to immediately
receive these income tax benefits in one tax year. The provisions
of Internal Revenue Code Section 179 allow a sole proprietor, partnership
or corporation to fully expense tangible property in the year it is
purchased. And in 2003, tax-law changes made this option much more
appealing by dramatically increasing -- from $25,000 to $100,000 --
the amount that can be written off immediately. Future allowable deductions
have been adjusted for inflation. You may not have to write a big
check in 2007 to claim the $112,000 deduction available this year.
You could claim the $112,000 deduction and simply make small monthly
payments to pay for the use of the equipment over time through a properly
structured lease. Moreover, the tax savings could be used to make
some of the monthly payments thereby reducing the overall cost of
ownership. |
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Read
on... |
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Business
Tax Incentives for Energy Conservation |
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Going
green = going black |
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Business
Tax Incentives Commercial Buildings - What is the tax incentive for
commercial buildings? A tax deduction of up to $1.80 per square foot
is available to owners or tenants (or designers, in the case of government-owned
buildings) of new or existing commercial buildings that are constructed
or reconstructed to save at least 50% of the heating, cooling, ventilation,
water heating, and interior lighting energy cost of a building that
meets ASHRAE Standard 90.1-2001. Only buildings covered by the scope
of ASHRAE Standard 90.1-2001 are eligible. Partial deductions of $.60
per square foot can be taken for improvements to one of three building
systems—the building envelope, lighting, or heating and cooling
system—that reduces total heating, cooling, ventilation, water
heating and interior lighting energy use by 16 2/3% (16 2/3% is the
50% goal for the three systems spread equally over the three systems).
An interim system-specific goal for lighting is provided directly
in the legislation and is valid until the IRS issues a final regulation.
The interim lighting provision allows prororated deductions from 30
cents to 60 cents per square foot for lighting systems as described
below. |
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Read
on... |
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Free
Energy Audit |
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Contact
Information
phone: 312-846-6457
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