IRS Revenue Procedure 2011-14 Energy efficiency and claiming the 179D deduction

The 179D tax deduction came about as part of the Energy Policy Act of 2005 (EPAct). Congress wanted to incentivize the utilization of energy-efficiency components in a building to one of the following parties:

1.The owner of the building
2.The tenant
3.The primary designer of an energy-efficient government building. (Architect, engineer, contractor etc.)

The deduction available is up to $.60 per sq./ft. for lighting, HVAC and building envelope, creating potential for $1.80 per sq./ft. if all three components qualify. These deductions are applicable to buildings that were either built or retrofitted after 12/31/2005.

Since EPAct came into effect, the IRS has provided interim guidance on EPAct deductions through several additional notices. IRS Notice 2006-52 describes in detail the rules and how to ensure a building qualifies if it was a new build or a retrofit. It requires the taxpayer to obtain certification that the property satisfies the energy efficiency requirements of 179D and specifies the software that must be used to calculate energy and power consumption. To further the cause, the IRS issued Notice 2008-40, which allowed a government building (non-taxpaying entity) to pass the deduction to the “primary designer” of the qualifying assets.

Until recently, taxpayers looking to claim the 179D deduction were limited by the three year statute of limitations for filing amended income tax returns for a particular tax year. That has changed with the issuance of Revenue Procedure 2011-14, which will allow some taxpayers to bypass this statute of limitations and claim this deduction all the way back to 1/1/2006 without filing one single amended income tax return. Taxpayers who wish to take the deduction without amending any returns will file a Form 3115 (Application for Change in Accounting Method) and will get to take the entire “catch up” deduction on the return that is being filed. This means that a taxpayer could potentially claim deductions from 2006-2010 (or 2011) all on one return and significantly reduce their tax burden, if not eliminate it altogether.

Deciding whether or not to amend returns or file for a Change in Accounting Method (Form 3115) is entirely dependent upon each taxpayers situation. If taxable income was higher in open years and therefore the taxpayer was in a higher tax bracket, it still may make sense to amend those returns. The impact of Revenue Procedure 2011-14 will also depend on whether or not any deductions have already been claimed or returns have been amended. A thorough analysis of each taxpayers scenario by an advisor experienced in 179D is advantageous to determining the best approach and claiming the maximum deduction allowed under the law.

T5 High Output Fluorescent High Bay Light Fixtures

High Bay Fixture: High Bay fixtures are perfect for low mount applications such as gyms, warehouses, assembly areas, food processing plants and hangars. High bay fixtures normally use high intensity discharge bulbs. These bulbs have special type of lighting which is much more intense than other light sources. Earlier, for indoor applications metal Halide is commonly used. It emits bluish white bright light which is more pleasant to the eyes than HPS. High bay lighting fixtures should be used in those areas where the bottom of the light fixture is more than 20 feet above the floor. In modern era the manufacturers have started to offer T5 High Output fluorescent High Bay light fixtures which are designed to deliver energy efficiency and cost-effective illumination to retail and industrial applications.

T5 Fluorescent High Output Advantages: T5 lighting was originally developed as a light source in combination with specialized reflectors for aquarium lighting. And because of the advantages of T5 high output lighting, this high output light source is being specified more in applications where standard Metal Halide high bays are typically used.

T5 High Output high bay fixture benefits: Following are the few reasons that make T5 High Output high bay fixture different from standard lamps:

Energy Efficiency: One of the main reasons that many companies turn to T5 High Output high bay fixtures is the ability of T5 to provide better light while consuming much less energy than traditional metal halide fixtures.

Lumen Maintenance: T5 fluorescent lamps only lose 5-6% of their lumen output between the rated initial spec and the mean spec. On the other hand, standard lamps can have 35% depreciation of lumen output during the same time period.

Strike/Re-strike: Basically HID lamps require some time to turn on which is called the strike time. And if there is problem of power interruption, the lamp would also need some time to re-strike. By contrast, T5 fluorescent lamps turn back instantly without affecting the rated life of the lamp. Modern T5 stabilizers allow multiple switch legs that can control the pairs of lamps in a fixture individually. These ballasts can be wired into different circuits or control systems to allow for dimming options.

Improved Color Rendering: Color rendition index (CRI) is the measure of the ability of a light source to reproduce the colors of various objects in comparison with natural light source. T5 lamps have a CRI of 82-85 while on the other hand metal halide lamps have a CRI of 65-70. The lower CRI can strain the eye and leave negative impacts visual acuity.

Small Size: T5 bulbs are extremely thin rather than the standard fluorescent tubes. This small size makes T5 fluorescent bulbs more efficient than standard fluorescent tubes.

Color Shift: Fluorescent lamps maintain consistent color throughout their life.

Color Choices: T5 fluorescent lamps are available in wide variety of color. Fluorescent sources offer a range of color options from 3000K to 6500K full spectrum daylight. Improved Lamp Life: Fluorescent lamps last almost three times longer than metal halide lamps.

Polished Concrete Floors For Increased Profit In Denver Retail Space

Retail stores are all over Denverso what sets one apart? Great customer service is of course absolutely essential, but so is the actual space in which your products are displayed. Even with a fantastic product, the design of retail space weighs heavily on its competitive nature. For this reason, it is vital to take inventory of the value of your retail space, and devise a way to improve it for a more appropriate atmosphere and better sales. One important aspect of that space is your flooring. Polished concrete floors are a great asset to any retail or commercial area, and can be a wise investment.

Concrete vs. Stone

If your business already has concrete flooring, then you understand how durable it is. Once installed, it will last forever. Taking care of it, then, is a matter of sprucing it up here and there. Polished concrete floors are a cheaper option than natural stone flooring, but have the same great benefits. Maintenance is incredibly simplesweeping and a periodic mopping will do the trick. This saves time and energy.

Beauty and Versatility

Many think of drab gray when concrete comes to mind, but in actuality polished concrete floors are elegant and classy. They look clean, are easy to clean, and can be incredibly versatile. You may have to look for quite a while to get the right color of marble, but concrete can be stained a variety of shades and colors. Concrete can also be painted for a different coloror stamped to have an edgy, textured look to your flooring. The possibilities may be limited with other flooring choices, here they are endless.

Energy Efficiency

Every owner would jump on the opportunity to save on the electric bill, right? Polished concrete floors have a fantastic, reflective surface that increases the efficiency of your lighting. This way, you dont have to install as much lighting, or at the same brightness as you would otherwise. This gives your retail space a financial edge, but also improves the atmosphere of your spaceparticularly if you have sources of natural lighting.

If youre looking to gain a competitive edge in the Denver retail sector, polished concrete flooring could help you to maximize the value of your space and make more for less.

Furnace and Heater Maintenance Maximizing Energy Efficiency

Most likely the type of heating system you have in your home is a forced air system. This type of system typically will continue to run smoothly with regular maintenance. Without regular maintenance, your furnace can quickly wear out. Maintaining your furnace should cost you around $100 a year, if not less. This is definitely more favorable than replacing the whole system. Proper maintenance will also keep your furnace operating efficiently. Efficiency is key to saving money on heating bills since heating accounts for about one-third of your energy bill. However, the biggest motivation for having your furnace serviced regularly should be safety. Your home furnace could be a source of a carbon monoxide leak if not properly maintained.

The number one thing you can do to keep your furnace in top working order is to clean it regularly! If you hire someone to do the job they will replace the air filter and clean the filter system, motor, and blower. If youre cleaning the furnace yourself, you may use a toothbrush to clean the fan blades and any other small areas accumulating dust. Before providing any maintenance on your heater be sure to switch off the power to the appliance by locating a switch. Also, do not forget to shut off the gas to the furnace by locating the knob near the gas line. The gas line is a black pipe that will be connected to the furnace. Turn the knob so that it sits perpendicular to the line to shut it off. It is now safe to open the furnace door, and vacuum in all the crevices your vacuum attachment can reach. Remember to vacuum out the base and around the base of the furnace. Try to remove as much debris and dust as possible. After cleaning the actual unit, make sure the area around the furnace is clean and clear of clutter as well. Never store any flammable liquids nearby or even in your furnace room.

Once all debris is removed, remove the old filter and replace it with a new one. The filter on your heater should be replaced monthly during the heating season. Continue to check all fan belts. The fan belts help the furnace blower operate. If you ever find that your furnace is running but heat is not being pushed through the vents, check for broken or worn fan belts. Replace any that look frayed, cracked, or worn. Check the tautness of the belts by pushing on the center of the belt. If the belt gives in more then an inch, the belt needs to be tightened by adjusting the the attachment bracket. If at any point you smell a gas leak, this is a serious problem. Do not continue to work on the furnace but leave your home and report the gas leak to your fire department and gas company.

If the unit constantly shuts off whenever the furnace kicks on and trips the circuit, this is due to an electrical problem. In this case, it is necessary to call an electrician or service professional to take a look at the problem. They will know how to safely fix the issue.

When all inspections and cleaning has been completed. Replace the anything that you removed such as the access panel. Turn the gas line valve back on and return power to the unit. You may need to relight the pilot light as well. Allow your pilot light to continually run. This will keep condensation at bay even when the furnace is not being used. Finally, use your furnace only as much as you need. In the colder months, dress a little warmer so you can set your thermostat lower. Youd be surprised how much you could save over the season by dropping your thermostat a couple of degrees! Also, try turning down the temperature even more when no one is home to maximize your energy savings.

Green Deal – The Biggest Energy Efficiency Drive In The Uk

The Green Deal UK aims to reduce CO2 emission and boost energy efficiency in the country. It has great potential to save large amount of money for householders and businesses, as well as to secure energy supplies for the future generation.

In December, 2010, the UK Government introduced the Energy Bill in the Parliament. The bill proposed ‘Green Deal’, that aims to revolutionise the energy efficiency in UK homes and businesses. The most ambitious energy efficiency drive in the UK to date, it enables private firms to offer green improvements to the residents and businesses at no upfront cost, and to recoup payments in instalments on the energy bill. The deal is an attempt by the UK Government to tackle the climate change and secure future energy supplies in the country.

The Green Deal is designed to encourage households and businesses in the UK to retrofit energy saving measures. The government has attempted to create a framework that allows selected private firms to provide energy saving measures to households and businesses without bringing additional costs to them. The policy makers consider it a long-term solution to energy related problems. It is expected to minimise the energy wastage, and help households and business-owners to save money when it comes to boost their energy efficiency. The Green Deal is the biggest ever shake-up in UK energy efficiency history.

Once it comes into force, the Green Deal will allow people to take out loans to improve the energy efficiency of their properties including insulation, heating and lighting. The loans which are to be attached to the property, will be paid back over a fixed period through the savings made on energy bills. As per the estimates, an average house will have 6000 of measures installed, that will be repaid in a time period of more than 25 years. The household will not be required to pay up-front installation cost. Since the repayment will be attached with the electricity meter, the scheme is open to all, without any inspection for credit history and employment status.

Under the Green Deal, people will be provided with financial support to improve the energy efficiency of their properties. Though the deal seems quite beneficial, government will have to take initiative to make it more effective. It’s needed to deliver the policies which encourage the public to take-up Green Deal. Additionally, the financial model must be attractive to the investors, i.e. the default risk should be minimum. In short, the government will have to establish a strong, recognisable Green Deal system that could create confidence and trust, both among potential consumers and service providers. However, the full detail could be available after the launch of Green Deal in 2012.

The Green Deal is open to all, homeowners, tenants, businessmen. If implemented properly, it will surely cut down the CO2 emission, and improve the energy efficiency in the country. If you’re also interested in this deal, and want to opt it, you can register your interest with a reputed company that provides this facility. Using Internet, you can find some reliable websites which help you apply for green deal. Considering your buying criteria, you can choose the best among them, and ensure a reduced energy bill and improved energy efficiency for your premise.

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