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Detroit Schools Leverage Tax Credits for Energy Upgrades

April 17, 2014 By Linda Hardesty

Detroit Public Schools is utilizing $150,000 of up to $1.8 million in energy tax credits to plan and design energy efficiency projects at 10 schools. Additional schools will be targeted for energy efficiency assessments and upgrades with the remaining tax credits.

The projects will include swapping of incandescent and fluorescent lighting with LED lighting and replacing of older, inefficient boilers with more efficient digitally-controlled equipment.

As a tax-exempt entity, DPS can allocate credits and rebates to design and construction firms involved in a 1994 and 2009 bond program for consideration to offset future professional fees and costs related to capital improvements. DPS is eligible for up to $1.8 million in tax credits and energy rebates as part of the IRS Section 179D and other efficiency improvement programs for capital improvements made between 2005 and 2013.

IRS Section 179D deductions for energy efficient commercial buildings have expired as of 2014, but congress may renew them.

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