How To Make Your Commercial Building Energy Efficient And Let The Government Pay For Part Of It
A Free Money Saving Report from New Energy Solutions, LLC.
Background and Introduction
Our team has been working with energy conservation since the mid 70's and we have been using the tax benefits that came out in 2005 to help pay for energy conservation on some of our buildings and on the buildings of some of our clients.
Currently we have identified 5-10 excellent products that can make a building energy efficient and we are currently testing and evaluating more products to add to the list of those that we recommend. In order to use products effectively, we have found that we need to gather a team of experts from various disciplines. The same is true with the various government tax incentives and rebates.
This is a complex subject. Our service to the reader is that we will share what we have learned and give business owners information that can help them make either new or existing buildings much more energy efficient and do it in a manner that will be cost effective. It is important to understand that a window is open until the end of 2008 where major incentives will be offered by the US government to do energy improvements.
Many of the products we will recommend are not widely known but they work and they have been well tested. This report is targeted to the business owners who can take helpful information and turn it into business profits that will pay many returns over the years. This will work If you have an existing building,or if you are building a new building that will be completed by the end of 2008.
Government Incentives To Make Your Building Energy Efficient
The short story is that you have US benefits that include tax credits and deductions; and you have state benefits that include credits, deductions and rebates and; you have city benefits that include rebates and loans and tax benefits.
A major benefit from the energy bill of 2005 is the Commercial Building Tax Deduction. Another major benefit is the 30% uncapped solar tax credit. For obvious reasons we note before explaining these benefits, that we are not official tax experts and any decisions regarding these laws should be reviewed with official tax advisors. We will simply tell you what it says and what we think it means and identify ways you can use energy products to qualify for the benefits.
There is a $1.80 per square foot business tax deduction for making a commercial building 50% more energy efficient than a comparable building. This can be broken down into $.60 for the building envelope (the roof and walls), or for the interior lights, or for the heating and air conditioning. So you can take $.60 or $1.20, or $1.80 per square foot deduction depending on what you do.
The deduction is a business expense that reduces the profits you are taxed on and the higher the income you have, the more this will benefit you. There is a 30% solar tax credit for money spent on solar systems that make electricity and that heat hot water for the building.
A credit is a dollar for dollar reduction of income tax that you would pay to the US government. We will now give an example of how this might work.
The Tax Saving Example
The owner has a building with 10,000 square feet which means that the business can spend $18,000.00 to energize the building and if the tax bracket is 40%, the savings will be $7,200.00 in taxes that do not have to be paid.
The owner can spend $50,000 on a solar system and the credits will be 30% which means that the tax savings will be $15,000. In 25 states there are major benefits for solar energy and the incentives there may come to another $10,000 to $15,000 to lower the cost of the solar system.
In very friendly energy states like Colorado the rebates are so attractive,that a very efficient solar system can have a major part of it paid for by the state.
The Energy Products Example
By using the EdenPURE heaters that are very energy efficient in the use of of electricity, and by using solar energy to produce the electricity for the heater, the owner can have a green heating system and save large amounts on the energy bill and qualify for the tax deduction since any energy that is off the grid counts for a reduction in energy consumption.
By Adding Thermo Shield Energy Paint on the inside and the outside of the building there will be tremendous savings on both heating and air conditioning and the building envelope will be made very energy efficient.
By adding a light tube system combined with fluorescent lights that dim when the sun is bright and that have reflectors, the owner can cut the cost of indoor lighting in the range of 60-80% compared to the older lighting systems and get the extra benefit of better lighting with the full spectrum of nutrient light that improves productivity and mitigates the winter blues.
Counting The Many Benefits Of This System (How Do I Love Thee ... Let Me Count The Ways.... )
1. Potential Tax Savings
You might put $7,200 in your pocket because of the Commercial Building Tax Deduction and you might put $25,000 to $30,000 in your pocket because of the US and state tax credits and rebates on solar energy. A reasonable estimate of your tax savings might come to $32,200.00.
2. Savings On Your Utility Bill
Over the lifetime of energy use in the building there could reasonably be $50,000 to $100,000 savings in dollars that you put into your pocket instead of giving to the utility company. Think of this as a small retirement system.
3. Savings on Your Building and Benefits for Owner and the Workers.
A Thermo Shield Roof is energy star rated and does a superior job in holding up under the UV pressure and in stopping water from leaking through. The Thermo Shield coating on the wall will last for a very long time and help hold the walls together especially if they are crumbling.
Water problems destroy many buildings and this coating solves those problems by letting the moisture breath out (like goretex) and so the water does not build up inside the building to freeze and to evaporate; both of which will destroy the paint jobs. The coating will keep the water from getting into the building and will take away many of the conditions that create mold.
The coating has a class A fire rating and we have records of homes that were not burned in subdivisions because of this coating while other homes burned all around them. We think that a fire burning your building can ruin your whole day and so we count this as a major benefit.
Because the paint holds up it also does not fade and when you need to repair painting problems you can use the original paint can and just paint a small section instead of repainting the whole room. We think that you will eliminate two or three paint cycles by using this paint which will make your painter weep but bring many dollars back to your business.
The light tubes bring in the full spectrum light which is healthy for people. Studies show as much as 50% improvement in productivity in high tech workers and in students. This improvement in productivity , health, and morale will put dollars in your pocket.
The EdenPURE heaters use a healthy and revitalizing form of energy that will help keep the people in the building healthy and happy and help the business owner to be more wealthy.
4. Savings On Your Cost Of Public Relations
Some owners put in a small solar system and the newspaper writes a story and customers come because it is a green business. What happens if you create a true energy efficient building that saves much more than other buildings and that is a healthy place to work in? We think your potential benefit in public relations will be very significant.
5. Savings On The Maintenance Of Equipment & On The Replacement Of Equipment
When heaters, and air conditioners run less, there is much less maintenance and much longer life for this equipment. There is less noise. The equipment can be sized smaller which makes it cost much less to purchase.
Action For Business Owners To Benefit From Tax Savings And Energy Savings
If you are interested in more information on this subject you are welcome to contact us. We have many quality products we have used and tested. We do projects and we consult on projects. Some people visit our buildings to see first hand what we have done and how this saves money and improves our business profits.
Best Regards , Bryan Anderson PhD.
Follow Up...
For more information you are welcome to contact Richard Berry at the "New Energy Tech Co." - Email:
richard@newenergytechco.com
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