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Offset the cost of upgrading equipment and facilities by taking advantage of tax credits and rebate programs.
Section 179 Deductions
Section 179 of the Internal Revenue Code allows small businesses to deduct the full purchase cost of qualifying purchased equipment from your gross income. The cost of upgrading to more energy efficient equipment can be deducted by qualifying small businesses under Section 179. The Tax Relief Act of 2010 and The Jobs Act of 2010 were passed last year which updated Section 179.
For more information, see www.section179.org/ and www.irs.gov/
Deduction for energy-efficient commercial buildings
The Energy Policy Act of 2005 established several tax deductions for commercial buildings. These tax deductions were available for systems “placed in service” from January 1, 2006 through December 31, 2010. However, on December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011.
For more information, see: Tax Deductions for Commercial Buildings
State and Local Tax Incentives
Some state and local governments may offer tax credits and deductions for purchases of energy-efficient equipment and upgrading of facilities. Contact your state or local tax authority for more information.
Many states and utilities offer money back on specific energy-efficient equipment, products, and even larger projects. Rebate programs vary by state, utility, and program sponsor. They can also change during the course of the year – so check for new rebate programs regularly!
Use the Database of State Incentives for Renewables and Efficiency to find a program in your area.
Low- and no-cost energy assessments and technical assistance programs are available in most parts of the country. These can help your organization create an action plan for energy savings.
Directory of Energy Efficiency Programs
The ENERGY STAR Directory of Energy Efficiency Programs can help you identify ENERGY STAR partner organizations in your state that sponsor energy efficiency programs.
Utility Energy Assistance Programs
Many utilities offer free or low cost energy assessments. The Lawrence Berkley National Laboratory Energy Cross Roads Utility Energy Efficiency Programs listing links to electric and gas utilities across the U.S.
Plant Energy Assessments
University-based Industrial Assessment Centers (IACs) are sponsored by the Department of Energy and provide eligible small- and medium-sized manufacturers with no-cost energy assessments.
Find Expert Energy Professional Help
ENERGY STAR maintains a directory of Industrial Service and Product Providers.