How to Qualify for T8 Lighting Tax Credit How to Qualify for T8 Lighting Tax Credit
Installing T8 lighting is an easy way to gain energy savings. Replacing your fixtures and lamps with T8 bulbs can also net you tax savings.
There are tax credits available for installing T8 lighting. The rebates amounts are $1.00 per qualified 28W lamp and $1.50 per qualified 25W lamp, These rebates are paid directly to the consumer. In order to qualify the lamps must have been purchased and installed on or after June 1, 2009.
Beginning June 1, 2009 these rebates became part of the Commercial Building tax incentives. You can receive a tax deduction of up to $1.80 per square foot if you are the owner or tenant of a new or existing commercial building. The lighting provision allows prorated deductions from $.30 to $.60 per square foot.
Who is Eligible?
The company or person that spends the money in the construction of the building is the recipient of the tax credits. This could be the building owner or even the tenant if they paid for the improvements. If it is a government owned boiling the designer may be eligible for the deductions.
How Does it Work?
The owner can take the deduction for the year the property was placed in service. The system must inspected and certified to show that it meets the energy saving guidelines issued by the IRS in partnership with the Department of Energy. Some of the general guidelines are that the certification must be done by a third party licensed engineer or contractor. Generally savings must be calculated by approved software.
How Do I Qualify?
You will need to know the square footage of the building, what year it was placed in service, and you must get a certification from a qualified professional showing that the energy saving targets have been met (50% savings for 3 systems or 10% for the building envelope, 20% for lighting, or 20% for the heating and cooling system).