Tax season is upon us and quickly winding to an end. If you’re a business owner looking for the best tax deductions to write-off, you’ve come to the right place.  The recently enacted Tax Cut and Jobs Act is allowing for 100% expensing of your LED lighting projects, and a 100% write-off for getting rid of old lighting.

You read that right – you can upgrade your lighting to LEDs with no money out of pocket and then earn cash back for abandoning your outdated lighting.  This incentive comes from changes to Section 179 of the tax code, which is designed to incentivize businesses to improve energy-efficiency by allowing them to expense the purchase of assets that aren’t real property.

Section 179 Changes Explained

Previously, the maximum amount a taxpayer could expense on LED lighting was $500,000 of the cost of services during the tax year.  Now, this has been increased to $1 million with the phase-out threshold being increased to $2.5 million.

Plus, businesses can now take their depreciation deduction in one year rather than spreading them out over several years.  The energy-efficient improvements must be depreciated in the year they are completed, so now is the time to act!

Take Advantage While It Lasts!

With any tax incentive, the expiration date is uncertain, changes are frequent, and there are no guarantees that the tax code will be as generous in subsequent years.  At Energeia Consultants,  we will make sure your project qualifies for the tax incentives before it’s too late!

We will identify the best LED tax incentives for your company and do the paperwork for you.  We are Michigan’s LED experts in Federal Tax Incentives from Section 179 of the Tax Cut and Jobs Act and will help you understand the process of writing-off your LED lighting projects! As a trade ally of two major Michigan utilities, we understand what it takes to get rebates processed as quickly as possible. Contact us today at (989) 430-4801 or reach out online today!