If you own a business in Michigan, alarm bells are ringing. There are a number of energy-associated tax credits that are just there for the taking. On top of that, there are loads of incentives to put your hard earned money back in your pocket. Take advantage of these programs that reward your business for being generous to the environment.
DTE Energy Programs
The DTE Energy Programs incentive covers an array of equipment like heating, ventilation and air conditioning (HVAC), food service equipment and more. The program incentivizes new and remodeled construction that meets LEED (Leadership In Energy and Environmental Design) and local building code standards. Further rebates are given to businesses who use Michigan-made equipment.
Incentive: Based on $0.07/kWh and $4.00/Mcf of first-year savings (maximum 50% of project cost).
Providing further tax exemption for using Michigan made products, Consumers Energy offers tax rebates for eligible energy-saving equipment. They also provide an online tool to help you size up your efficiency, offering customized improvements.
Incentive: Based on $0.08/kWh and $8.00/Mcf of first-year savings.
On the federal level, the Energy Start program offers rebates in several select cities. Lighting, HVAC controls, variable frequency drives (VFDs), food service equipment, and more qualify for this incentive. Do note that these programs require pre-approval.
Incentive: up to $0.08/kWh for first-year savings.
The Energy Optimization program offers incentives for some rural energy cooperatives and municipal utilities. Tax breaks are available for commercial and industrial facilities alike. Energy efficient lighting, HVAC, variable speed drives, food service, and compressed air measures are among the eligible wares.
Incentive: $0.06/kWh for first-year savings or 75% of the project cost, whichever is less; pre-approval is required.
The Michigan Economic Development Corporation’s (MEDC) Michigan Energy Office offers funding for energy efficient activities, such as technical assistance, energy-use evaluations and audits. Check the link or contact MEDC for more information on the resources available.
DTE Energy, in partnership with Michigan Saves, is offering 0% financing up to $50,000 for an energy efficiency project that receives prescriptive measure incentives through our Energy Efficiency Program for Business. The Michigan Saves program offers financing from $2,000-$250,000 with rates from 6-10% and terms from 2-5 years.
If you are planning an energy optimization project, Property Assessed Clean Energy (PACE) financing offers loans with longer terms and lower interest rates than conventional financing. Assessments are written to be equal to or less than the structure’s annual energy savings. Not only does this improve your bottom line, the community benefits in higher property valuation, increased employment and a reduction in greenhouse gases.
Michigan is a top-ranked state for energy efficiency, and their individual energy efficiency programs are top-ranked nationwide. Take advantage of all that the state has to offer to energy-conscious companies.
For more information on how to save on your small business energy costs, visit dteenergy.com/savenow.
For more tips and inspiration for small business owners, visit Small Business Pulse Detroit.