Industry News
Warehouses In Ohio Benefit From The Government's Recently Extended EPAct Tax Deduction Program
November 19, 2008
Manufacturing companies and warehouses in Northeast Ohio will benefit in a huge way from the government's recently extended EPAct 2005 tax deduction program.* Manufacturers and warehouses who install energy efficient, high intensity fluorescent lighting may qualify for a 60 cent/psf accelerated tax deduction, potentially worth tens of thousands of dollars in tax savings, all taken in the tax year installed.
Lighting Services Inc. in Twinsburg, Ohio has specialized in "turnkey" energy efficient lighting retrofit projects since 1998. They provide a no obligation lighting energy audit, suggesting that companies replace their expensive to operate, metal halide hi-bay and low-bay light fixtures with HIF T-5 and T-8 fluorescent lighting solutions. In addition they provide the installation, EPAct compliance certification and warranty to their customers, in order to save their clients 50% or more in lighting energy expense. In today's economic climate, businesses are searching for ways to cut their expenses and improve their bottom line. With the deregulation in Ohio's energy KWH rates effective January 1, 2009, customers are considering ways to start saving money now.
Taussig says that businesses typically see at least 50% lighting energy savings when replacing metal halide (MH) or high pressure sodium (HPS- yellow) lights. In combination with the potential 60/cent psf accelerated tax deduction, his customers see paybacks in less than two years in many cases. Companies with multi-shift operations or with high KWH rates see the shortest paybacks. Taussig says: "Expect ROI's of 50% to 70% plus on your investment. Where else can you get that kind of return on your money?"
Lighting Services of Twinsburg, Ohio provides their "turnkey" lighting retrofit services across NE Ohio from Toledo to Ashtabula and South from Cleveland, to Akron, Canton and Columbus, Ohio. LSI specializes in lighting retrofit solutions for its customers, who will confirm they realize 20%-60% higher light levels, as well as 50% improvement on their lighting energy costs.
Taussig suggests: "In many cases the amount customers save on their monthly electric bill will pay for a lighting retrofit project, which provides a positive cash flow from day one. How often do businesses have the opportunity to cut what otherwise would be considered a fixed expense?"
Lighting Services, Inc. sells and promotes energy efficient Westinghouse T-5 and T-8 fixtures as well as other brands. In racked aisle warehouses Lighting Services promotes the Westinghouse "Aisle Lighter Hybrid" fixtures with narrow beam, specially designed reflectors, which push the light down where it's needed, reducing the number of lamps required to obtain reasonable foot candle levels, saving additional energy. (2 or 3 bulbs vs. 4 or 6) Another benefit of HIF T5 and T8 fluorescent fixtures is the ability to add occupancy or motion sensors for dramatically increased energy savings.
Taussig was quoted as saying: "If you can be "Green", improve your bottom line and get better lighting, in many cases for what you are already mailing your electric company each month, why wouldn't you investigate replacing your old style metal halide MH lighting with T5 or T8 HIF fluorescent fixtures?"
*The Emergency Economic Stabilization Act of 2008 (HR-1424), approved and signed on October 3, 2008, extends the benefits of the Energy Policy Act of 2005 through December 31, 2013.