On August 8, 2005, the Energy Policy Act of 2005 [H.R. 6 Public Law 109-58] was initiated, and signed into law effective January 1, 2006. This landmark piece of legislation represents the most significant overhaul of the nation's energy policy in nearly 15 years. The main goals of EPAct 2005 are to promote energy efficiency and conservation. In the recent past, the law provided that the cost of energy saving investments must be capitalized and depreciated over time. Today EPAct 2005 section 1331 states, "There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial property placed into service during the taxable year."

The Significance of the Act should lead every business owner to have an audit conducted to assess the lighting systems in their warehouses,manufacturing facilities and office spaces. F.D. Hayes Electric Company has teamed up with Graybar Electric Supply to bring an exciting and unique opportunity to businesses in our community, and are ultimately capable of performing that audit and providing a cost schedule reflecting your savingswith the replacement of old, inefficient fixtures. Our capable technical staff is completely prepared to design for improvements of your existing system as well. 

This law regulates and mandates minimum efficiency regulations, and offers tax incentives up to $1.80 per square foot for businesses when they file their 2006 & 2007 tax returns. These tax credits are available for qualified businesses when they install energy efficient lighting systems, improve their HVAC systems, and improve their building envelopes (windows and insulation). Lighting system upgrades that qualify, for example, allow building owners a tax deduction at a rate of $0.30 to $0.60 per square foot if energy density is 25% to 40% below ASHRAE/IENSA 90.1 watts per square foot levels.

We recommend that you consult your CPA for tax advice specific to your business.

The first step you need to take is to schedule a lighting system audit with F.D. Hayes Electric Company. We will set up a visit to your facility, and determine if you qualify for the program.

Contact us; (517) 482-0608 or email:  

pfhayes@fdhayes.com

Serving Michigan since 1923,

F.D. Hayes Electric Company is the right connection.

We will make sure the job is done right.