Shedding light on types of federal funds and energy upgrades

Timing

To qualify for deductions, energy-efficient upgrade projects must begin by December 31, 2024, and be completed by December 31, 2028. If the project starts after December 31, 2024, or finishes after December 31, 2028, then it must be carbon neutral. When considering projects involving grants or loans, because of the many government agencies involved in overseeing these, application deadlines vary. It is recommended to turn to a trusted partner in navigating these resources to help take advantage of the opportunities they present.

Some resources include:

• www.ecos.org/bil-ira-arpa-funding-resources/
• www.ppacg.org/funding-opportunities/
• www.transportation.gov/rural/ev/toolkit/ev-infrastructure-funding-and-financing/federal-funding-programs

While these laws can be challenging to navigate, understanding the IRA and IIJA and how they are available for clients’ lighting upgrades, can be beneficial for businesses and clients both. There is no time like the present to begin the planning process for upcoming projects with these tax incentives and federal funding resources as catalysts.

Notes

¹See Section 179D, Energy Efficient Commercial Buildings Tax Deduction, www.irs.gov/credits-deductions/energy-efficient-commercial-buildings-deduction.

²Refer to this article to learn more about the impact of Inflation Reduction Act (IRA), www.bakertilly.com/insights/ira-impact-on-tax-exempt-organizations.

³Visit leddirectgroup.com/blog/179-d-tax-deduction-are-you-taking-advantage-of-this-for-your-led-lighting-projects.

⁴See the cost and advantages of lighting upgrades at leddirectgroup.com/blog/179-d-tax-deduction-are-you-taking-advantage-of-this-for-your-led-lighting-projects/.

Author

Nate Heiking is product development engineering manager at Kenall Manufacturing Co. Heiking is a 20-year veteran in the lighting industry, playing an active role in the transition from legacy lamp sources to solid state lighting. He is passionate about using technology to reduce energy consumption optimize the human experience and lessen the environmental impact of building material products now, and well into the future. Heiking can be reached at nathan.heiking@kenall.com.