You may be eligible for an energy efficiency tax incentive, credit and/or rebate for your qualified LED lighting solution depending upon your geographical location and individual circumstances (residential vs. commercial) and whether or not your utility company is offering rebates. LED Lighting Products will assist you in
determining what you may be eligible for.
There is however, no substitute for consultation with a qualified tax professional.
Some utility companies have established rebate programs for energy efficient lighting including qualified (IES-LM-79-08 verified) LEDs, some will offer rebates on a case by case basis, some are planning rebate programs, and others have no rebate program. There is wide variation in practice. TLT will help you work with your local utility company to see if your LED lighting solution qualifies for a rebate.
Different states have different programs promoting lighting energy efficiency. Some useful links:
Rebates, Deductions, and Credits – What’s the difference?
Tax deductions reduce your overall taxable income with the value of the deduction dependent on your tax bracket. For example, if you are eligible for a $1,000 deduction and are in the 20% tax bracket, the deduction will reduce your taxes by $200. Tax credits reduce the amount of tax you owe dollar for dollar. Rebates are simplified tax credits. This is, instead of reducing the amount of tax you owe, rebates reduce the cost of a purchase.
The Energy Policy Act of 2005, extended to 2013, allows for lighting energy efficiency tax deductions for commercial buildings; $0.30 – $1.80 per square foot, depending on technology and amount of energy reduction.