Introduction
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National Update: EPAct 2005
In mid-April, the National Electrical Manufacturers Association's Lighting Systems Division successfully launched www.lightingtaxdeduction.org, a website providing comprehensive information exclusively about lighting upgrades as they apply to EPAct's commercial buildings tax deduction provision. The website contains a wide range of frequently asked questions, process maps detailing compliance with ASHRAE Standard 90.1-2001, and examples of projects that demonstrate how target reductions in lighting power can be achieved. The site also provides descriptions of popular energy-efficient lighting strategies and technologies, links to research studies, a directory of NEMA Lighting Systems Division members, and additional communications resources. The site is a companion to the Commercial Building Tax Deduction Coalition's www.efficientbuildings.org site and can be accessed directly or by a link from efficientbuildings.org.
On May 11, 2006, the Midwest Energy Efficiency Alliance will present a workshop on “Tax Incentives for Energy Efficiency” in Chicago. Sponsored by area utility companies and the U.S. EPA, the day-long seminar is designed to educate attendees on the commercial tax deduction provision, the range of technologies that will qualify for a deduction, and how to apply for the deduction. For more information, visit the MEEA at www.mwalliance.org. Another iteration of the seminar is tentatively been scheduled to take place in July 2006.
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EPAct 2005 Opportunities Await You….
Tax deductions offered through EPAct 2005 are currently available on qualifying lighting technologies placed into service between January 1, 2006 and December 31, 2007...so don't let the unprecedented opportunity to benefit from a lighting upgrade while taking advantage of government-sponsored financial incentives pass you by!
For more details on the commercial building tax deduction, consult the following existing as well as new and noteworthy resources:
EPAct 2005 Resources:
• For up-to-the-minute information on EPAct 2005 and related tax incentives, continue to visit www.efficientbuildings.org, www.energytaxincentives.org or NEMA.org.
• Now available! A website devoted solely to providing information on lighting upgrade activities and related EPAct 2005 tax deduction opportunities has now been launched at www.lightingtaxdeduction.org . See this newsletter's National Update section for more details on this brand new and dedicated resource….
• Visit the Association of Energy Engineers (AEE) online at http://www.aeecenter.org/realtime/EPAct05/ to register for a convenient online seminar covering the “ Energy Policy Act of 2005: Energy Efficiency Requirements”
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EPAct FAQs
Confused about the tax provisions within EPAct 2005? One of the most popular questions the experts are currently fielding involves the handling of lighting upgrades during this interim period until the IRS issues official guidelines. Following is an overview of the Interim Lighting Rules as covered by the Commercial Building Tax Deduction Coalition:
Overview, Interim Lighting Rules:
From January 1, 2006 until the Treasury Department issues final regulations defining savings targets for individual building systems, the Commercial Buildings Deduction's Interim Rules for Lighting Systems are in effect. The Interim Rules offer an accelerated tax deduction equal to the complete cost of installing energy-efficient interior lighting, capped at $0.30-$0.60/sq.ft. proportional to lighting power density (LPD, calculated as watts per square foot) savings of 25-40% below the LPD values prescribed in Standard 90.1-2001.
Under Commercial Building Deduction rules, “energy-efficient interior lighting” is defined as:
- Lighting that is classified as interior lighting;
- Otherwise depreciable as a cost;
- Installed in the United States;
- Part of new construction or renovation within the scope of the ASHRAE/IES 90.1-2001 Standard, including retrofits; and
- Certified to reduce LPD to 25-40% less than the minimum requirements in Standard 90.1-2001's Table 9.3.1.1 (building area method) or Table 9.3.1.2 space-by-space method) (not including additional interior lighting power allowances).
Warehouses are an exception -- in this case, 90.1 must be exceeded by 50% to qualify for a tax deduction of $0.60/sq.ft. In addition:
- all controls provisions in Standard 90.1-2001 must be met
- bi-level switching must be installed in all occupancies except hotel and motel guest rooms, store rooms, restrooms and public lobbies, and
- the minimum requirements for calculated light levels as established in 9th Edition of the IES Lighting Handbook must be met
In addition to the above guidelines, the Commercial Building Tax Deduction Coalition advises interested parties to proactively proceed with their upgrade plans during the interim period using good judgment and accredited sources and to thoroughly document all activities. < TOP >
Leading with Lighting
The following real-life case study helps demonstrate how Saint Xavier University in Chicago, Illinois improved its lighting quality and bottom line by pursuing a lighting upgrade:
 Home to over 600 students and situated across 72 acres of residential property in southwest Chicago, the outmoded T12 fluorescent lighting installed throughout Saint Xavier University's 620,000+ square feet of classroom, office, and residential space rendered the campus long overdue for a lighting upgrade. “In addition to consuming excessive amounts of energy, a lot of the university's classrooms, hallways, offices, and living spaces seemed darker than they should be,” confessed Bob Anderson, SXU's Facilities Manager, following his team's assessment of the campus' previous lighting system. “In addition, there were always maintenance issues with the system, which were tedious and problematic for the campus' small, in-house maintenance team.”
With a $35,000 grant from the Illinois Clean Energy Community Foundation helping to offset product costs, the team initiated their lighting upgrade in Spring 2005. Conversion to more energy-efficient fluorescent T8 lamps and electronic ballasts within the campus' main Ward Academic Center in 2005 immediately reduced the 286,000-square foot building's energy consumption and costs by 30-40% while standardizing the lighting system and significantly improving lighting quality.
Says Anderson, “we're delighted with the results of the upgrade so far and the new lighting system has vastly improved operations and aesthetics in our main campus building. The availability of these outstanding energy-efficient lighting products coupled with the generous grant from the State of Illinois have enabled us to stretch our limited resources and make the best choices possible on behalf of the students, faculty, and infrastructure at SXU.” < TOP >
News You Can Use
Global Energy Consumption on the Rise: The U.S. Department of Energy projects that by the year 2020, world energy consumption will increase by 50%, or by an additional 207 quadrillion BTUs. If the global consumption of renewable energy sources remains constant, the world's available fossil fuel reserves will be consumed in 104 years, or by early in the 22 nd century.
Americans Willing to Conserve Energy: According to The Associated Press, a recent poll reveals that Americans are willing to conserve energy to offset the impact of rising oil prices, global warming, and other economic and environmental conditions affecting our energy supply. Some 80-90% of respondents were reportedly willing to make sacrifices such as buying energy-efficient lamps, appliances, and cars, washing clothes in cold water, and turning down hot water heater temperature.
Did You Know? According to the 2006 Construction Industry Intelligence Report, the green building market will be worth a minimum of $30 billion by 2010.
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Product Spotlight
Capitalize on EPAct Opportunities with Advance's Enhanced New Centium® Electronic Ballasts For 2-Lamp T5/HO Lamp Applications
 Advance's popular Centium® electronic ballasts for 2-Lamp T5 High Output lamp applications, which previously incorporated a minimum starting temperature of 0° F, have now been enhanced to feature a minimum starting temperature of –20° F. This new design feature now ensures the ballasts' reliable operation and flexibility in an even broader range of extreme conditions.
Versatile and energy-efficient, Advance's Centium electronic ballasts for 2-lamp T5/HO operation are ideal for high-bay fixtures as well as refrigeration applications. The ballasts feature Advance's exclusive IntelliVolt® multiple-voltage technology, enabling their operation at any input voltage from 120 to 277 volts, 50/60Hz, as well as programmed-start ignition, which ensures optimum lamp life in frequent switching applications. In addition to total harmonic distortion less than 10%, a version of the ballast also features a 90° C case temperature rating.
Visit our website for details on our full line of Centium T5/HO ballasts. < TOP >
Customer Spotlight
Ed Gray
Director,
Energy Infrastructure,
National Electrical Manufacturers Association (NEMA)
On the commercial market's current response to
EPAct 2005 commercial tax deduction opportunities
 "Interest in the opportunity has been overwhelming, particularly among users with warehouses and factories, and the availability of tax incentives has definitely driven an uptick in lighting upgrade activity within existing buildings. The end users currently reaching out to NEMA are well-informed and the majority of questions we receive relate to bi-level switching requirements and other technical issues that affect a user's eligibility for incentives. We advise users to move quickly to implement the provision, as the tax deduction is only available for two years at present....and to support the efforts underway in the U.S. Congress to extend the provision. Overall, the tax deductions help shorten project payback periods and increase returns on investment, enabling end users to pursue higher-efficiency upgrades than they might otherwise have considered."
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Tools of the Trade
White Papers Provide Valuable Informational Resources
To help enhance your understanding of the benefits of lighting upgrades, the lighting implications of EPAct 2005, and the new Federal tax deductions available to qualifying energy-efficient lighting installations, Advance's EPAct Website offers a variety of informational white papers that provide an overview of your lighting upgrade opportunities. The white papers comprehensively cover the lighting upgrade opportunity from a variety of perspectives, including:
- The Financial Benefits of Lighting Upgrades
- Lighting Upgrades Boost Worker Productivity
- Lighting Upgrades Made Easy: The Path to Energy Savings
- New Lighting Technologies Offer Exciting Upgrade Opportunities
- Profiles in Lighting Upgrades (real-life case studies)
Designed to support your lighting upgrade pursuits, let Advance's educational white papers help drive you down the beneficial path towards a lighting upgrade today! < TOP >
For Your Reference...
See the following recent trade articles for general information on
EPAct 2005:
“An Opportunity to Create Demand,” TED , April 2006
Read article...
“Lighting Q&A,” Power Outlet, 2006
Vol. 6 Issue 2 Read article...
Industry Calendar
Join 20,000 other end users and lighting industry professionals to view the latest lighting innovations at Lightfair International, North America's largest annual lighting trade show. The event takes place on May 28 th – June 1 st at the Las Vegas Convention Center in Las Vegas, Nevada. For more information, visit the Lightfair website.
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