You may know that Solatube is a great solution for bringing daylight into an interior space, but are you aware that there may be some great tax advantages to daylighting with Solatube? As businesses increasingly focus on sustainability and energy efficiency, governments and tax incentives are aligning to encourage these practices. This means that your decision to brighten up your spaces with Solatube’s innovative daylighting solutions could not only lead to a more vibrant environment but also potentially contribute to significant financial savings.

In this article, we will delve into the world of tax incentives related to daylighting, specifically focusing on how Solatube installations can offer both environmental and financial benefits. So, let’s shed some light on how embracing daylight with Solatube could brighten up more than just your surroundings – it could also illuminate your financial outlook!

Why Invest In Daylighting?

Daylighting offers great benefits to occupants of commercial spaces. The decision to infuse natural light into work or business environments brings about a range of positive outcomes. First and foremost, it significantly enhances the well-being of employees. Exposure to natural light has been associated with improved mood and reduced stress levels, contributing to a more positive and harmonious work atmosphere. Employees who enjoy the benefits of natural light are generally happier and experience better mental health.

Moreover, the introduction of daylighting has been linked to heightened productivity levels. The quality of light has a direct influence on focus and concentration. When employees are immersed in well-illuminated spaces, they tend to be more efficient in their tasks, translating into improved overall productivity. Additionally, the creative potential of employees is unleashed in well-lit environments. Natural light has a stimulating effect on creativity and innovation, fostering an ambiance that nurtures fresh ideas, effective collaboration, and imaginative thinking.

Health benefits also emerge as a result of daylighting. The synchronization of the body’s natural circadian rhythm with natural light exposure leads to regulated hormone production and better sleep patterns. This holds promise for the overall health and well-being of occupants, reducing the likelihood of health-related complications.

The positive effects of daylighting extend to employee satisfaction as well. Providing employees with well-illuminated and comfortable workspaces communicates the company’s commitment to their well-being. Such an environment bolsters job satisfaction and, consequently, enhances employee retention rates. Reduced absenteeism is yet another advantage, stemming from the healthier work environment that abundant natural light fosters.

Beyond the workforce, daylighting imparts a positive impression to clients, customers, and visitors. Aesthetically pleasing, well-lit spaces convey a dedication to quality and employee contentment, enhancing the overall image of the organization. The significance of sustainability is also underscored by daylighting. Demonstrating a commitment to environmentally friendly practices aligns with a sustainable brand image and appeals to environmentally conscious stakeholders.

Possible Tax Benefits for Daylighting

Section 179 of the IRS tax code is a provision that allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This deduction was designed to encourage businesses to invest in their growth by offering a substantial tax incentive for purchasing equipment and assets that contribute to their operations.

Any improvements to a building’s interior qualify, as long as they are not attributable to the enlargement of the building. Because Solatubes are installed in the plenum space, the majority of your product and installation may qualify.

Although the original bonus depreciation rate was 100%, beginning in 2023, you can still deduct 80% of the qualifying expenses in the year of installation. If your project qualifies for this bonus depreciation, it can significantly reduce the net cost of your project.

Savings for Incorporating Solatubes Into Your Solar Energy Installation

As you can see in the above photo, Solatubes can be a great complement to a project incorporating solar photovoltaic panels. If you’re considering a solar panel installation because you’d like to invest in green energy, Solatubes are a great addition. Daylighting can provide a majority of the light during the day, eliminating the need for electric lights and preserving stored electricity for other building uses. Additionally, the small footprint used by the Solatube preserves maximum space for photovoltaic solar panels. Most importantly, when incorporated in such a project, the cost of the Solatubes and installation may qualify for a 30% Federal tax credit.

Learn about Tax Deductions Specific to Your Project

Because every daylighting project is unique, there’s no way to guarantee which deductions yours may qualify for. The best way for commercial property owners to determine if their daylighting project is eligible for tax deductions is to consult with a professional who specializes in tax incentives and sustainable building practices. Connecting with a tax expert can provide valuable insights into the specific tax incentives available and the criteria that need to be met. Professionals can assess the project’s eligibility based on factors such as the type of daylighting solution being implemented, the energy efficiency improvements achieved, and the local regulations and incentives in place.

Additionally, you may want to consider reaching out to the government agencies responsible for energy efficiency incentives and sustainable building practices. These agencies can provide property owners with accurate and up-to-date information on available tax incentives. Many offer information online, making it easier for property owners to understand the eligibility criteria and benefits associated with their daylighting project.

Daylight Specialists in MN, ND, and SD

Exploring potential tax deductions for Solatube lighting installations within your business is a strategic move that aligns with both financial goals and sustainable practices. Leveraging provisions like Section 179 of the IRS tax code can provide significant advantages. By combining your commitment to energy efficiency and eco-friendly practices with potential tax deductions, you not only brighten your spaces but also illuminate a path toward financial savings and a greener future for your business.

Don’t feel like you need to navigate the process of researching and planning your daylighting project on your own. Daylight Specialists’ team would be happy to provide any additional information you need to plan your project and determine whether it may be tax deductible.

If you have any questions, please contact us at 763-335-0225 or submit your information. We’re here to help!