NAM: Manufacturers Should Act Now On Energy Tax Credits Manufacturers risk losing out on several climate and en- ergy tax credits if they don’t act fast — and will miss an opportunity to save millions, according to insights from the National Association of Manufacturers. The Biden administration and Congress have created additional financial incentives for manufacturers that em- brace sustainable practices, but these incentives won’t be around forever. The benefits: Currently, manufacturers can access a wide range of climate and energy-focused tax credits, grants and other benefits, from new programs and funds created through the Inflation Reduction Act to legacy tax credits like the 179D tax deduction — a provision that was expanded recently to offer significantly more value. “If you make qualified upgrades or retrofits to your ex- isting building or facility, the government used to give you a tax credit through 179D that was worth $1.88 per square foot times your tax rate,” said Brian McGoff, President and Chief Operating Officer of Dalrada Corporation, a manu- facturing solutions provider focused on sustainability. “Now, it’s $5 per square foot for projects that meet the prevailing wage and apprenticeship requirements. That’s a direct tax credit — so if you define the project, design it, start implementation, and have the proper software to demonstrate the required savings, you can apply.” McGoff added that the lifetime cap on the maximum deduction allowed for a property was replaced with a more favorable three-year cap. “Companies are allowed to elect an alternative deduction for energy-efficient retrofits in the year the retrofitting plan is certified, to reduce the building’s energy usage intensity by at least 25 percent,” he said. How it works: The 179D commercial buildings ener- gy-efficiency tax deduction primarily enables building owners to claim a deduction for installing qualifying sys- tems in buildings, says McGoff. Taking advantage of ESG-related tax provisions doesn’t only help these companies become more sustainable, he explains. It also helps companies save money on up- grades and other infrastructure projects; cuts down costs over time once their operations become more energy effi- cient; and makes their property more valuable. “I can fix my leaky roof for the third time, or I can invest in more efficient lighting, airflow and structural upgrades for rooftop solar and improve my overall energy efficiency,” said McGoff. “I’m going to spend 10 or 50 percent more to do that, but I’ll get significant returns through these grants, tax deductions and benefits, along with direct savings from increased energy efficiency over time. The alterna- tive is you just keep fixing your roof the same way.” The current value of these credits and opportunities won’t last forever. Several of these programs, including 179D, will have a reduced value after 2024.
Board Converting NEWS INTERNET DIRECTORY
SAUER SYSTEM www.sauersystem.com
Sauer provides intelligent solutions for scoring, slitting, slit-scoring, and perforating on corrugators and floor slitters; and glue tab cutting, creasing, slotting, trimming and scrap chopping on presses. New, featured offerings include FRX Adjustable Folding Rail System and G3 Scoring System: the latest proven creasing technology on the market.
STAFFORD GROUP www.go2stafford.com
Interactive website for Stafford Corrugated Products and Stafford Cutting Dies. Featuring online ordering of replace- ment parts. Also, visitors can automatically calculate sheet size for most die-cut standards.
SUN AUTOMATION GROUP ® www.sunautomation.com
SUN Automation Group is the global leader in providing innovative solutions to the corrugated industry. SUN engi- neers and builds the SUN625 Rotary Die Cutter, provides sales, service and support in North and Central America for Latitude Machinery Corporation, manufacturer of Mini to Jumbo FFG and RDCs. Additionally, SUN is the North Amer- ican, UK and Ireland sales and service provider for Para Machinery’s line of equipment, and is the North American sales provider for Highcon. SUN also powers the corrugat- ed industry’s premier IIoT platform, Helios, and is the OEM source for Langston/Staley equipment parts and service. THACKER INDUSTRIAL SERVICE COMPANY www.thackerindustrial.com Specializing in corrugated machinery, T.I.S.CO. offers quali- ty-made products, support services, and more. T.I.S.CO. has a reputation of dependability, not only in the product, but in service and support. With more than 25 years’ experience, T.I.S.CO. installs equipment and machinery, moves or sets up entire plants, rewires and rebuilds - all over the world. VT GROUP www.vtgrouponline.com VT offers prepress services for the POP display and corru- gated shipping container industry including graphic design, optimized digitally imaged printing plates and innovative pre-mounting solutions. Our large-format digital printing fa- cility (Digital Impact) is a leading short-run manufacturer of distinctive POP displays and signage where litho-like graph-
ics are preferred. WPR SERVICES www.wprservices.net
WPR Services was established in 2016. What originally start- ed as a technical services company expanded its product offerings to include a machine center learning platform POWtalk™. Our analysis of video, audio, machine metrics, employee ergometrics, and person to person conversation provides a way to identify safety and process inefficiencies.
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August 21, 2023
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