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.

U.S. Department of Energy – “Low Power Factor is expensive and inefficient. Low Power Factor also reduces your electrical system’s distribution capacity by increasing current flow and causing voltage drops. Low power factor is caused by inductive loads (such as motors, transformers, etc.).” 

“Some of the benefits of improving your Power Factor are:  1) your utility bill will be smaller. 2) Your electrical system’s branch capacity will increase. Uncorrected power factor will cause power losses in your distribution system. You may experience voltage drops as power losses increase. Excessive voltage drops can cause overheating and premature failure of motors and other equipment.”

FPL – Florida Power and Light- “FPL is not responsible for damage to motors from power abnormalities (surges).   Surge protection should be considered for installation at any breaker panel that has motors attached to it. Surge protection can help reduce damage to a motor’s   windings from external spikes, as well as reduce damage to customer equipment from power spikes generated by large motors starting and stopping.”

Xcel Energy – “Save energy and lower operating costs when you optimize your motors.” “Improve Power Factor.” “even small improvements in motor efficiency will translate to significant energy savings”  “A power factor correction device can cut your costs” “Surges, transients, sags and momentary interruptions can damage your equipment – Protect your business equipment with transient voltage surge suppressors.”

Now you are probably asking youself how can you save energy for your business? It’s simple, contact V-Blox to have a Energy Specialist come and provide you with a free energy analysis.