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Tax Benefits Worth Millions
Warehouses and distribution centers that combine energy efficient lighting and heating have become the largest and fastest growing category of buildings qualifying for the highest EPAct Federal tax deductions of $1.20 to $1.80 per sq. ft. This form of Federal stimulus money is now available for both new warehouse construction and energy retrofits for existing facilities. Other large industrial and commercial buildings – such as industrial plants, auto service areas and parking garages – can also qualify.
HEATING – “Biggest Bang for the Buck”
Owners and tenants that have already installed new lighting are still in a great position to upgrade their heating system. The significant remaining tax benefits for the combined package can still be realized if they act now. A new Cambridge Blow-Thru® Space Heating system will typically cost less than a new lighting system. New Cambridge heaters offer the “biggest bang for buck” because their reduced energy and operating costs can be greater and the payback even faster than the past lighting retrofit project.
A “NO BRAINER”
Lighting and heating are often the two biggest
sources of energy use in a warehouse. The decision
to install more energy efficient warehouse lighting
and heating systems is now pretty much a
“no-brainer” based on current Federal tax
incentives, additional utility rebates and a
dramatic 35% to 50% reduction in energy costs.
The payback can be less than a year. Capital lease financing packages
are available that actually help generate new cash flow with no initial
cash outlay. It doesn’t get much better than that.
EPAct Case Studies
Building owners and tenants with Cambridge heaters have received tax benefits worth millions of dollars.
Here are just a few buildings that reduced their annual energy costs and qualified for Federal EPAct tax deductions from $0.60 to $1.80 per square foot by installing energy efficient Cambridge Blow-Thru® Space Heaters.
Click on table to enlarge
Warehouse Energy Optimization
A warehouse heating system more than five years old and 80% or less efficient should be replaced. Installing a few high performance Cambridge Blow-Thru® space heaters is the best solution. It can be a risk-free investment with payback in less than a year followed by an on-going annual cash benefit. Cambridge heaters offer up to 70% energy cost savings, lower maintenance costs, more even building temperatures and improved indoor air quality. Savvy building owners and tenants won’t settle for anything less than Genuine Cambridge. The availability of an EPAct tax deduction is like icing on the cake. Installing a low cost, energy efficient Cambridge heating system at less than $0.60/sq. ft. can also provide additional EPAct tax benefits to help pay for new lighting and other warehouse energy upgrades.
Efficient Lighting and Heating
Warehouse lighting systems that have not been upgraded in the last seven years probably use inefficient metal halide or T-12 fluorescent lighting. On January 1, 2009, manufacturing of most probe-start metal halide lighting was banned and effective July 1, 2010 most T-12 lighting is no longer manufactured or imported into the United States. Beginning in 2012 there will be new bans on inefficient incandescent lighting. That means warehouse owners and tenants with old inefficient lighting will have to pay very high prices for replacement lamps and bulbs.
The solution is the installation of today’s T-8 and T-5 lighting that can reduce electrical lighting energy costs by 40% to 60%. However, a large warehouse with lots of old lighting can be expensive to retrofit and often exceeds EPAct’s $0.60/sq. ft. cap. So the smart thing to do is to combine a lighting retrofit with a Cambridge heating retrofit that costs less than $0.60/sq. ft. Together the new lighting and heaters can qualify for an EPAct tax deduction of $1.20/sq. ft. The low cost, energy efficient Cambridge heaters can help pay for new lighting. In some cases the energy savings is so great that a $1.80/sq ft deduction is available to help pay for a new roof or additional building insulation. If new warehouse lighting has alreadybeen installed it’s still not too late to get EPAct tax benefits for installing a new Cambridge heating system.
EPAct Tax Advisor
Cambridge can recommend an experienced, independent tax firm familiar with commercial/industrial heating equipment who can help obtain Federal stimulus money (tax incentives) for warehouse energy optimization projects. They will do a fast, free feasibility study to determine a company’s total tax benefits associated with installing a Cambridge heating system in either a new or existing building. As an EPAct tax expert, they will do the required energy modeling comparison to ASHRAE 2001 standards using IRS approved software. Finally, they will provide the appropriate Energy Tax 179D Certification documentation for IRS submittal.
Get Paid to Save
If you’d like to maximize your return and get paid cash to cover both the lighting and heating upgrades, Cambridge has the solution. This new first-of-a-kind program combines Cambridge heaters, energy efficient lighting and qualified EPAct tax support with 100% guaranteed financing from a global provider of leasing and business finance solutions. With no up-front cash, the project can be 100% financed through a capital lease package that typically creates an immediate positive cash flow from the energy cost savings. Contact Cambridge for more details.
Learn More > EPAct Frequently Asked Questions (FAQ's)