Hi Chris, thanks for your question regarding tax incentives for light emitting diodes (LEDs) and solar photovoltaic (PV) installations.

The Database of State Incentives for Renewables and Efficiency, or DSIRE, is a great tool for finding financial incentives for your green projects. This lists both federal and state incentives for renewable energy and energy efficiency projects on commercial and residential properties.

179d: Commercial Tax Deduction for LED Lighting

For LED lighting installations on commercial properties, the federal Energy-Efficient Commercial Buildings Tax Deduction may apply. This incentive awards a tax deduction of $0.60-$1.80 per square foot, depending on the amount of energy reduced and which technology is used to achieve this reduction.

If a lighting system is paired with the building envelope, HVAC and hot water systems to achieve a 50% power and energy cost reduction over a building meeting the minimum requirements set forth in ASHRAE Standard 90.1-2001 - it will receive a $1.80 tax deduction per square foot.

If the lighting system is installed individually (without the building envelope, HVAC or hot water system), but would achieve a 50% energy reduction if the other systems had been installed - it will receive a $0.60 tax deduction per square foot.

See a previous article on green-buildings.com, "LED Lighting and Section 179d Tax Deductions" for a thorough explanation of how this incentive works.

For other possible financial incentives for energy efficient lighting on commercial properties, check the list of federal incentives for efficiency and state incentives for efficiency on DSIRE.

Residential Incentives for LEDs

Though I did not find any federal tax incentives for LEDs for residential properties, you should search DSIRE's state incentives for efficiency to see if there is an applicable incentive in your area.

For example, the nonprofit group Efficiency Vermont offers special pricing on LEDs sold by certain retailers to Vermont residents.

Additionally, you can check if ENERGY STAR's list of special offers and rebates from their partners has an offer on LED lighting in your area.

DSIRE: Tax Incentives for Solar PV

DSIRE lists both federal incentives and state incentives for solar PV.

DSIRE lists many federal incentives for solar PV, both for commercial and residential installations. Those which will be most relevant to you are likely the corporate tax credit and the personal tax credit.

The corporate tax credit, called the Business Energy Investment Tax Credit, awards a 30% tax credit for solar installations on commercial, industrial, utility, or agricultural properties. There are no limits for solar installations.

The personal tax credit, called the Residential Renewable Energy Tax Credit, also awards a 30% tax credit for solar installations. For solar PV installed after December 31, 2008, there are no limits on the tax credit. This tax credit expires on December 21, 2016.

These federal incentives for solar PV can be paired with state incentives. To find which incentives, if any, are available for solar PV in your state, use DSIRE’s map of state solar incentives.

I hope this helps, Chris! Good luck.

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