Small Business are Investing in Efficiency
With the passage of the 2018 tax reform act, the corporate tax rate has plummeted from 35 to 21 percent, making it the lowest rate since 1939. Companies like AT&T and Fifth Third Bancorp have made headlines by giving their employees bonuses while Wells Fargo has announced it will raise its minimum wage up to $15 an hour. These tax savings aren’t limited to just large companies, in fact under this new legislation, businesses will now have a standard deduction of 20 percent – effectively lowering the business’ taxable income.
Small business owners are unlikely to compete for headlines in how they spend their excess savings, but they are likely to invest in their company’s future, and a solid investment is renewable energy technology. By integrating tried and true environmental solutions, most businesses can decrease expenses, improve revenue and have a net positive effect on the environment.
Here are smart some wise investments for efficiency upgrades:
1. Install LED Lights
Lighting is essential for daily operations but is often overlooked. It is important to ensure that lighting is not only adequate, but also efficient.
- LED lighting is energy efficient and can cut energy consumption by up to 70%
- LEDs last longer than traditional bulbs and are provide better, glare-free lighting for the work environment
- LED lighting is a relatively inexpensive upgrade and comes without risks
2. Upgrade Your HVAC System
According to the U.S. Department of Energy, most of the energy cost that goes into powering HVAC is lost to waste—up to 30 percent for an average commercial building. Replacing old systems could easily save you thousands, reducing maintenance and wasted energy expenses.
3. Implement a Building Automation System (BAS)
Building automation can improve energy management and save your business anywhere from 5-30 percent, simply by smartly controlling heating and cooling in your building to eliminate waste.
With building automation, your business will save money and decrease its impact on the environment. Less waste and better efficiency equate to monetary gains and sustainability for your company.
4. Solar Panels
Solar power systems can reduce a building’s electric cost significantly, yielding big decreases in costs. Rebates, various tax incentives (offered by the government or utility providers), and low interest loans make solar a sound investment which high potential long-term saving.
5. Energy Efficient Windows and Doors
Installing storm windows and automatic doors will reduce the amount of air flowing in and out of your building, saving money spent on air conditioning.
About 20% of air infiltrates through window and door openings, silently contributing to your high utility bills. By installing storm windows alone, you can reduce heat loss through windows by 25-50 percent.
6. Buy New, Energy-efficient Equipment
The new tax bill allows businesses to write off the entire cost of a depreciable asset in the year it has been purchased instead of amortizing over several years, so buying equipment is more feasible for businesses. Buying energy-efficient equipment saves even more due to the increased efficiency of newer equipment, doubling the advantage of these type of upgrades.
Take Advantage of Your Tax Savings
By putting your tax savings to good use, your business can become more efficient and productive, creating an environment for even more savings in the future. Partner with EnergyLink to take advantage of these tax savings as an investment in the future of your business.