How the GOP Tax Plan will Benefit the LED Industry

January 18, 2018

This past November, Republicans in Congress passed the Tax Cuts and Jobs Act, the largest overhaul of the US tax code in 30 years. While this bill has been met with controversy and criticism from the American public and Democrats in Congress, there is a sense of optimism that the bill will, in fact, incentivize investment in green energy infrastructure. Let’s explore the basics of the tax bill’s components and how it’s perceived to positively impact the future of the LED lighting industry.


What’s in the Plan?

The most significant component of the GOP tax plan is the tax cut provided for large businesses and corporations, slashing the tax rate from 35 percent to 21 percent. Additionally, the plan restructures the pass-through laws by which sole proprietorships, partnerships, and S-Corporations are structured, lowering the tax rate for these business entities to 25 percent.

Another significant change in the tax plan is the expansion on bonus depreciation provisions. Bonus depreciation is a valuable tax-saving tool allowing businesses to take a first-year deduction on the purchase of eligible business property. The new tax plan expands bonus depreciation to assets purchased after September 27, 2017 (so yes, the law works retroactively) and increases the depreciation percentage to 100 percent.

What this Means for Businesses

Large businesses and corporations will receive a slew of benefits from the tax bill, and with a lower tax rate, will have significant profits to invest in new factories, infrastructure and higher wages for workers. Certain companies, such as Comcast and Boeing, have already announced special bonuses and wage increases for workers stemming from the bill.

Whether you’re a fan of the GOP tax bill or not, your business can inevitably benefit from a lower tax rate and use the extra money to invest in LED retrofit lighting for your facility. Additionally, the amendments to bonus depreciation will positively impact your business’s investment in LED, as you can expect 100 percent expensing under the new law. Finally, with the average LED installation using 25-80 percent less energy than incandescent lighting, LED infrastructure with Go Beyond Lighting not only comes at a reasonable price but will result in an immediate decrease in electricity costs.

Infrastructure is our specialty, and we hope you’ll consider using your tax break to benefit eco-friendly lighting solutions to meet your business’s needs.