If you are thinking of switching to LED, yes this is the best time to do that.

Lawmakers extended the tax benefits for those business that will choose to upgrade to energy efficient building when they passed the bill that sent stimulus check to millions of Americans.

Aside from that, the commercial building tax deduction or the 179D Section 179D, or EPAct179D is permanent.

If we can remember before, it expires at the end of the year. But now, it is permanent. Its beneficial to business to switch to LED because the tax deduction is in place.

Imagine $ 1.80 per square foot tax deduction will grow each year by inflation. Base on Energy Tax Saver, Energy Star and Department of Energy there are 3 different partial deductions;

1. $.60 per square foot for interior buildin

2. $.60 per square foot for building envelop improvements

3. $.60 per square foot for HVAC system upgrade

But ofcourse not all building will qualify for the maximum deduction, but this will not stop us from applying. Still, partial deduction will still give us huge savings.

Base on 179D, there are qualifications your business needs to meet for you to receive the tax deduction.

*Retail buildings

*Apartment buildings four stories or higher

*Office buildings


*Industrial buildings For you to get the full deduction of $1.80 per square foot, the energy and the power cost should reduce to 50%. Partial deductions are also available based on the project and energy reduction. But still the 10% of energy reduction will cause huge savings.