Tough economic times have affected businesses at every level. As owners search for ways to cut back, they may choose not to invest in equipment upgrades or opt to outsource rather than hiring full-time employees. One area where business owners simply can’t afford to neglect is that of energy optimization and efficiency. To save money in the short and long terms, business owners should take advantage of as many energy savings as possible with the help of recent government programs and policies.
New Net Operating Losses Policy
In November 2009, the federal government introduced the “Worker Homeowner and Business Assistance Act of 2009.” The Act was designed to stimulate the economy by reducing the taxes for struggling businesses and homeowners.
For businesses, the new law means that businesses can carry their Net Operating Losses (NOL) for five years, as opposed to the three years allowed by previous legislation. NOL refers to tax deductions that exceed the company’s gross income. Companies that claim NOL are eligible for speedy refunds that they can use for a variety of improvements including structural and equipment upgrades.
Green Energy Savings
Businesses can maximize their energy savings by using the windfall to purchase energy-efficient equipment including:
- Installation of green energy sources such as solar panels or wind turbines
- Improvements to insulation
- Replacement of old windows with airtight, energy-efficient ones
- Placement of energy optimization and power factor correction equipment
These types of equipment can ultimately save a business big money on a monthly basis through reduced electric bills, and decreased equipment downtime and maintenance costs. Also, some equipment may qualify for tax credits as well so be sure to tell your accountant all the energy efficient upgrades you made for your business.
Why Make Energy Improvements?
Many businesses have moved to make green improvements in the past decade, and there has never been a better time to go environmentally friendly in the workplace. Aside from some tax credit benefits, business owners can realize significant long-term savings through energy optimization.
- Energy optimization decreases electrical waste directly from the breaker, improving overall efficiency.
- Green appliances significantly reduce electric bills, for long-term savings that last for the life of the appliances.
- Investing in energy-efficient lighting both reduces wasted electricity and eliminates the production of excess heat, which necessitates additional cooling.
For savvy business owners, the time is ripe for investing in energy efficiency. Taking advantage of the current policies can translate into dramatic savings in the long run.
| 
| 
| 
| 
| 
| 
Posted by Administrator @ 9:30 am
Tags: energy optimization, energy savings, go green, power factor correction
