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Hello and Happy New Year!
We have some very exciting energy efficiency news to share with you as 2016 gets rolling.
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If you implemented an energy efficiency project (lighting, HVAC, or building envelope) in 2015 or plan to in 2016, there is potentially a substantial Federal Tax Incentive available for you to take advantage of. (below we go into more detail about EPACT for those of you who would like to know more.)
Please do not hesitate to reach out to us if you have questions
about whether your project qualifies for EPACT.
Another great way to pay for energy efficiency projects is to take advantage of the various utility rebate incentives your electricity and natural gas providers offer. If you are unaware of what those programs look like for your company, we can help you capture these dollars as well.
We are looking forward to helping each of you manage your energy use and costs in 2016.
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Yours,
BRIAN PAGEAU & THE MEG TEAM
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P.S. For more details about EPACT, read below…
EPACT was first signed into law in 2006 and was effective through 2013. At the end of 2013, EPACT was technically expired, but the legislature did not extend or kill the act. It sat in limbo all of 2014 until December when the legislature retro-actively extended the incentive for all projects conducted in 2014. Then again in 2015 EPACT sat in limbo up until just before Christmas when the legislature retro-actively extended the incentive for all 2015 projects and also proactively extended EPACT through 2016.
EPACT created the Energy Efficient Commercial Buildings Tax Deduction, a special financial incentive designed to reduce the initial cost of investing in energy efficient systems via an accelerated tax deduction under section §179D of the Internal Revenue Code.
The EPACT tax incentive is applicable in "energy efficient commercial building property" designed to significantly reduce the heating, cooling, water heating and interior lighting cost of new or existing commercial buildings placed into service between January 1, 2006 and December 31, 2013. §179D includes full and partial tax deductions for investments in energy efficient commercial building that are designed to increase the efficiency of energy-consuming functions. Up to $0.60 for lighting, $0.60 for HVAC and $0.60 for building envelope, creating a potential deduction of $1.80 per square foot. Interior lighting may be improved using the Interim Lighting Rule, which provides a simplified process to earn the Deduction, ranging from $0.30-$0.60 per square foot. Improvements are compared to a baseline of ASHRAE Standard 90.1 2001 standards for projects implemented through 2015. Projects completed in 2016 are compared to a baseline of ASHRAE Standard 90.1 2007 standards.
Achievement of these benefits requires cooperation between the facilities division of a business, its tax department, and an engineering firm specializing in EPAct 179D deductions (like Midwest Energy Group!). Again – if you have further questions regarding EPACT and what it might mean for your company and energy project, contact us!
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