Stores Benefit from Tax Deduction

Voorhees, NJ (Jan 30, 2006) -- Service Lamp Corporation announced today that their lighting customers will benefit from the Energy Policy Act 2005 provision that rewards efficient lighting design. A deduction of up to 60 cents per square foot may be taken if lighting efficiency meets specified criteria. The maximum deduction is $1.80 for lighting and other efficiency measures.

The deduction applies to new construction as well as remodeling projects placed into service after January 1, 2006. There are no limits on size of the project, small or large. The Energy Policy Act of 2005 (EPAct 2005) offers building owners the maximum deduction if the entire building achieves a 50% reduction in annual energy cost when compared to the industry standard ASHRAE/IESNA 90.1-2001. Energy costs defined in EPAct 2005 refer to heating, cooling, water heating and lighting.

Monte Lee, regional manager for New Jersey based Service Lamp Corporation, has notified customers that their lighting designs should qualify for the maximum deduction under EPAct 2005. “The great thing for our customers is that if the entire building doesn’t qualify they can still take a deduction for efficient lighting. Deductions are awarded on a sliding scale to a maximum of 60 cents per square foot,” says Lee.

A partial deduction of 60 cents per square foot is provided for building subsystems, such as lighting, in the event the entire building does not qualify. ASHRAE/IESNA 90.1-2001 allows 2.1 watts per square foot for retail plus an additional allowance of 1.6 watts for “lighting equipment installed in retail spaces that is specifically designed and directed to highlight merchandise. The total allowance (3.7 watts) is more generous than many current, state building codes but is the basis for computing the tax deduction.

EPAct 2005 intentionally rewards store owners for using energy efficient products.  In some cases these products carry a higher initial cost but offer long-term energy savings to stores. Energy efficient light sources used in Lee’s lighting designs include ceramic metal halide track heads; electronic ballasts used with T5/T8 lamps, infrared halogen lamps, and compact fluorescent lamps.

Lee is a contributing editor for Furniture World magazine and his article “Better Lighting - Lower Cost“ appears in the October 2005 publication. The article is available on line at  He will discuss EPAct 2005, lighting design, code compliance and the benefits of efficient lighting at the NHFA Retailer Resource Center ® during the April 2006, International Home Furnishings Market in High Point.

This announcement is intended to increase public awareness of EPAct 2005 benefits but is not offered as tax advice.

For additional information contact Service Lamp at 800-222-LAMP.


About Service Lamp Corporation

The accent is on service at Service Lamp. Large enough to manage national accounts but small enough to give each customer personal service, Service Lamp provides lighting products from Philips, Sylvania, General Electric and a number of quality lighting manufacturers to commercial customers nationwide. Philips Lighting Company announced a distribution partnership with Service Lamp on June 6, 2005 to focus on the furniture industry. Service Lamp is supplier to National Home Furnishings Association, has national accounts with furniture manufacturers, and supplies Top 100 retailers and independent furniture stores. Lighting fixtures, track systems, ballasts and light bulbs of all types are shipped from Service Lamp's distribution center in Voorhees, NJ. Additional information about the company's products and services can be found on or call 800-222-LAMP.