The Tax Opportunities for LED Lighting in Car Dealershipsmbedewy
In the wake of the restructuring of the U.S. automobile industry, the U.S. car market is now dominated by seven major consolidated car companies: General Motors, Ford, Chrysler/Fiat, Toyota, Lexus, Hyundai, and Honda. In particular, as the U.S. brands recover, each is re-imaging itself as energy efficient by driving down all car models’ fuel consumption and consolidating their number of dealerships. In the quest to reduce operating costs these dealers are investing in facilities that match their brand’s fuel efficiency efforts.
To get an idea of the kind of fuel efficiency efforts U.S. auto brands are making, consider Ford’s new EcoBoost engine. According to Ford, the EcoBoost engine combines advanced direct injection technology and turbo-charging with a gasoline engine. The end result is an engine that can deliver up to 20 % better fuel economy, 15 % lower CO2 emissions, and improved driving performance when compared to larger displacement engines.
Car dealers are interested in both energy efficient indoor lighting and energy efficient outdoor lot lighting. They are increasingly very comfortable with LED lighting technology because they have witnessed it mainstream into automobile headlight and taillight applications. LED’s are now mainstreaming into dealer showrooms and outdoor lots.
The Section 179D EPAct Tax Opportunities
Pursuant to Energy Policy Act (EPAct) Section 179D, car dealerships making qualifying energy-reducing investments in their new or existing locations can obtain immediate tax deductions of up to $1.80 per square foot.
If the building project doesn’t qualify for the maximum EPAct $1.80 per square foot immediate tax deduction, there are tax deductions of up to $0.60 per square foot for each of the three major building subsystems: lighting, HVAC (heating, ventilating, and air conditioning), and the building envelope. The building envelope is every item on the building’s exterior perimeter that touches the outside world including roof, walls, insulation, doors, windows and foundation.
Unique 2011 Opportunity: Enhanced Bonus Tax Depreciation
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