Commercial Building Tax Deduction and Other Incentives for Going Energy Efficient

by | Feb 25, 2013 | Financial Accounting

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As homeowners and commercial property owners try to find ways to become more eco-friendly, the government is providing even more incentives to businesses. If you have considered making your property more energy efficient, the amount of money you will save on your energy bills, costs you will save on maintenance and repair and the money you will save on your taxes with the help of the commercial building tax deduction should be enough to convince you.

Energy Savings

A large portion of a commercial operation’s bills are its energy bills. The lighting, heating and air conditioning are a large component of running a business and also a large portion of the monthly bills. If your business has a large overhead, you might find yourself looking for any way possible to save money on a monthly basis. Turning to eco-friendly lighting, HVAC or your building envelope could greatly reduce your monthly bills, allowing you to see a return on your investment, as well as higher profits in a short amount of time.

Lower Maintenance

Energy-efficient lighting can lower your need for maintenance and repairs by a significant amount. This is mainly due to the fact the energy efficient options last much longer than the standard lighting fixtures you might already own. This is due to the decreased amount of energy they use. The bottom line is the less lighting or other utilities that need repair and maintenance, the lower your repair bills are and the higher your profits.


As an even greater incentive, the government has instilled the commercial building tax deduction that encourages building owners to find ways to become more energy efficient. Those who improve their energy efficiency under the guidelines of The Energy Policy Act of 2005 are eligible for a tax deduction the year during which they make the improvements. This could result in a significant savings on your taxable income during that year.

Turning to energy-efficient operations in your business is quickly turning to a way of life for everyone. If you need a bit of encouragement, the fact you will save money on a monthly basis with lower bills, be able to lower your maintenance costs and receive a large commercial building tax deduction during the year you make the changes provided you follow the guidelines set by the government should change your mind.

For more information about the commercial building tax deduction, visit the website of Walker Reid Strategies.

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