Are Your Facility Improvement Projects Leaving Money on the Table?
From utility rebates and renewable energy credits to tax deductions and rapid depreciation, incentives for energy efficiency and sustainability projects are widely available throughout the state of Ohio. Without knowing about the variety of options, many building owners are leavings thousands of dollars on the table when implementing even the most basic facility upgrades.
The first, underutilized, and often easiest-to-attain incentive is rebates from the utility companies. On both the electrical and gas side, companies like AEP, Duke, DP&L, and many others are providing a huge variety of incentives for projects big and small. Simply replacing lighting with more efficient technologies like LED can result in major rebates. Additionally, more complicated projects like HVAC upgrades and building automation systems can result in huge rebates as well. If it saves energy, there’s likely a rebate available.
Next, are a variety of funds that can help pay for a renewable energy project. For new solar thermal installations, Green Energy Ohio (GEO) is offering a 30% rebate as long as the system is installed by a GEO approved contractor. On top of all that, most renewable technologies qualify for bottom line investment tax credits (ITC’s) which can be up to 30% of the installed project. Similarly, renewable energy credits (RECs) are available with almost any renewable project and can then be sold to REC brokers to help enhance the project cash flow. Plus, loan guarantees through the Department of Energy can help in financing some of the larger scale projects that may not otherwise get accomplished.
Finally, numerous tax incentives are available above and beyond the ITC’s mentioned above. Rapid depreciation of larger capital projects can greatly affect your current year tax burden, and many efficiency measures are allowed by the IRS. EPAct 2005, which was recently extended, provides up to $1.80 per square foot for efficiency enhancements to your facility. That number could go even higher in the coming years.
Bottom line, there is a lot of money out there waiting to be claimed. Entriq Solutions can help you navigate these incentive programs and assure you aren’t leaving money on the table. Call us to review your options.