Restaurant Lighting System

How Your Lighting Impacts the Tax Aspects of Your Business

For decades, the incandescent light was the main star in many homes and business establishments. But times have changed.  Technology has gone a long way especially in the last 15 years or so. Although incandescent light bulbs still exist to these days, many residential spaces, offices, schools, restaurants, and enterprises are quickly switching to energy efficient lightings, such as LED and CFL bulbs. And there are a few good reasons why.

Whether you are looking for an effective way to reduce your electricity bill or make your business sustainable, one of the areas you want to pay attention to is your lighting system – the most utilized fixture in your physical shop or company.

The Saving Opportunity of Your Lighting System

A good lighting system can make or break your business. If you are running a café or restaurant, you want to create the right mood for your customers. Otherwise, they will not come back after the first visit.

If you have a small space, a good quality and strategically placed lighting system can make your establishment look bigger or wider. A poorly lit establishment may hinder your staff from doing their job well, cause an accident, or discourage your customers to stay longer and frequently.

But when installing or upgrading your lighting system, you don’t just look into buying the most expensive bulbs and tubes in the market. You want to save on electricity as much as possible. You want something that would give your establishment a friendly, happy, and relaxing ambiance. You want lights that will illuminate your place for years without the high maintenance cost. Most importantly, you want a lighting system that would qualify you for tax benefits.

Section 179D of the Energy Policy Act indicates that building owners or tenants that invest in energy efficient installations are eligible for immediate tax deductions of up to $1.80 per square foot.

A tax deduction of up to $0.60 per square foot is available to building owners or tenants who do not qualify for the maximum tax deductions, but whose individual lighting, building envelope or HVAC systems partially qualify or meet certain target levels of the interim lighting rule.

If you are planning to revamp or renovate your business, you’d want to consider upgrading your lighting system and make sure you are using energy efficient materials like LED lights.

Benefits of LED Lighting

LED lights are well-known for being energy efficient. Compared with traditional incandescent, LED light bulbs typically consume about 25% to 80% less energy. But there is more to LED lights than its money saving promises. Other reasons why more businesses are installing LED lighting system include the following:

  • LED lights last longer

A LED light bulb can last up to 11 years of continuous operation. If you use it for 8 hours a day, you won’t need to buy a replacement until after 20 years. A good quality LED light can provide up to 25,000 hours or more light.

  • LED lights do not contain toxic materials

Many people nowadays are becoming more aware of the environment. Various organizations are promoting green living to ensure that the future generation will continue to enjoy the planet Earth. You can help preserve the environment in your own little way by using LED light because they do not contain mercury and other harmful materials, not to mention that they are 100% recyclable.

  • LED lights are durable and flexible

LED bulbs are perfect especially for outdoor lighting because they are made to withstand rough conditions. They remain reliable even if exposed to wind and rain, and functional under cold and low temperatures.

Pick the Right Lighting System for Your Business

Making a decision to use energy efficient lighting products is one thing. The next step is to choose what LED lights to purchase and install. Not all LED lights are created the same. LEDs differ in color, light quality, light output, wattage, and whether to use in wet or moist locations. There are LED lights that are more suitable for home use only, while other types of LEDs are ideal for commercial and industrial use.

It is critical to define your goals, know the mood you want to achieve with your light, compare different products, and pick the lighting system technology that will meet your business’ needs. If you find the task daunting and time-consuming, you may consider looking for a company that offers enhance lighting systems aimed at reducing energy consumption.

An energy efficient lighting system will give you the peace of mind and confidence in running your business.