Commercial property owners are encouraged to find ways to become more energy efficient by the EPAct 2005 tax deduction. This policy, known as the Energy Policy Act, allows business owners to take advantage of tax savings if their property meets certain guidelines. In addition to saving money on utility bills due to lower energy usage, business owners can also realize lower costs in terms of maintenance and even save on their taxes.
Monthly Savings
In order to run a business effectively, you need to use the lighting and HVAC systems continuously. This use can begin to add up, costing business owners a large amount of money on a monthly basis. For many businesses, the cost of monthly utilities is one of their highest costs. Since many businesses are constantly trying to reduce their costs to remain competitive and profitable, they are constantly trying to reduce their overhead. Changing to eco-friendly lighting and HVAC systems can have a significant impact on your energy bills.
Annual Savings
When an HVAC system breaks down, it is no secret it can be a costly expense. Even lighting repairs can add up. If you make energy-efficient changes that meet the EPAct 2005 tax deduction requirements, you can greatly save the amount of wear and tear your systems receive. While this provides you with monthly savings by using less energy, it can also eliminate the need to repair or replace HVAC or lighting systems, saving you even more money in the long run.
One-Time Tax Savings
One of the largest benefits for many companies, depending on their size and the number of changes, is the tax deduction they receive in the year of the improvements. For some businesses, the tax savings are significant enough to lower their taxable income, allowing them to pay off loans that were taken out to make the improvements in the first place, furthering their savings.
Commercial buildings have a variety of ways to make energy-efficient choices for their businesses. Aside from the obvious benefit of doing good for the environment, businesses will have the added benefit of a significant amount of money savings, both monthly and as long-term savings. Even though the EPAct 2005 tax deduction is a one-time deduction, the long-term savings are well worth the effort it takes to make the changes.
For more information about the EPAct 2005 tax deduction, visit the website of Walker Reid Strategies.