A New Law, A Bright Opportunity
The recently passed One Big Beautiful Bill Act (OBBBA) has reshaped the energy and tax landscape. While many headlines focus on the phase-out of certain clean-energy incentives, there’s one powerful provision that gives commercial property owners and facility managers a huge reason to act now: 100% bonus depreciation.If your business is considering upgrading to high-efficiency LED lighting and smart controls, the new tax rules could let you write off the entire investment in the first year—maximizing cash flow and accelerating your return on investment.
What is 100% Bonus Depreciation?
Traditionally, capital improvements are depreciated over several years, meaning you recover your costs slowly. The OBBBA changes that for certain assets, including lighting systems:
- Full Cost Deduction in Year One – Instead of stretching deductions out, you take them immediately.
- Applies to Qualified Assets Placed in Service After January 19, 2025 – If your upgrade goes live now, you benefit right away.
- Improved Cash Flow – That tax savings can be reinvested into other priorities.
Why Lighting Upgrades Are the Perfect Fit
Lighting is one of the most impactful upgrades you can make for energy savings—and now it’s also a powerful tax strategy:
- Immediate Write-Off – A $500,000 lighting retrofit could mean up to a $500,000 tax deduction in the same year.
- Lower Operating Costs – LEDs powered by low voltage use up to 75% less energy than LEDs powered by line voltage.
- Better Workspaces – Modern lighting improves occupant comfort, productivity, and safety.
Where Does Section 179D Fit In?
The Energy-Efficient Commercial Buildings Deduction (§179D) is still available for projects that begin before June 30, 2026. However:
- 179D and bonus depreciation generally cannot be applied to the same costs.
- Since 100% bonus depreciation fully expenses lighting upgrades in the first year, there is usually no remaining cost basis for 179D on that same project.
- §179D may still be relevant for other building upgrades (like HVAC or envelope improvements) or projects structured to allocate costs differently.
The real benefit of OBBBA for lighting upgrades is the ability to capture the full tax deduction immediately—a cash-flow advantage that pairs perfectly with long-term energy savings.
The Bryte Light Advantage
At Bryte Light, we specialize in turnkey lighting and smart infrastructure solutions for commercial buildings, K–12 schools, and data centers. Our team helps you:
- Design and install cutting-edge lighting systems.
- Maximize your energy and tax savings under the new rules.
- Navigate how incentives like §179D may apply across your broader facility improvements.
We don’t just upgrade your lighting—we upgrade your bottom line.
Don’t Wait—The Time to Act is Now
Tax laws change. Incentives expire. Right now, you have a golden window to make an investment that lowers your operating costs, improves your facility, and delivers an immediate tax benefit.
Contact Bryte Light today to schedule a no-obligation savings assessment and see how much you could keep in your pocket this year.
Bryte Light – Intelligent infrastructure. Brighter future.
