TechSmart Blog


Section 179 = A Tax Avenue To Lighting Upgrades

More and more companies are realizing that they can save money by cutting your energy bills, and improve your lighting by retrofitting your existing HID’s or outdated T12 Lamps. Nevertheless many companies are still reluctant to make the move even with the great ROI’s and Ameren Rebates because the economy is still not saying spend. But you can still make this important move to upgrade your lighting with little or no risk by embracing the Section 179 tax incentives.

Both the ‘Tax Relief Act of 2010′ as well as the ‘Jobs Act of 2010′ that passed in late 2010 affected Section 179 in a positive way for this 2012 tax year. Following are the highlights for the 2012 tax year:

  • 2012 Deduction Limit=$139,000                                                                                   Section 179 Deduction limit after adjustment for inflation has increased to $139,000 (maximum allowance would have been only $25,000 prior to the new legislation).
  • 2012 Limit on Capital Purchases = $560,000                                                                  Section 179 Threshold for total of equipment & software that can be purchased has increased to $560,000 (threshold would have been only $200,000 prior to the new legislation).
  • 2012 Bonus Depreciation = 50%                                                                                       The new law allows 50% "Bonus Depreciation"on qualified assets placed in service during 2012    

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