Light it up!

Rachel Commerford

Rachel Commerford

Did you know that your restaurant lighting is your third largest energy consumer?

There is a silver lining with the use of LED lighting. One LED light can do what it takes two or three traditional lights to do.

Incorporating LED lighting into your restaurant may not only save you money on your energy bills, but may also make you eligible for some tax deductions and energy rebates.

Some local energy companies offer energy-saving rebates, so, contact your power company to determine if you qualify and discuss options available. It is important to note that certain energy companies require pre-approval before you incorporate LED lighting into your store and before you will be allowed to take advantage of their energy efficiency rebates.

Deanna Olton

Deanna Olton

Another way to take advantage of LED lighting is through a federal tax deduction. You may be eligible to take a $0.60 deduction for every square foot of building space if you are able to meet the IRS required overall 25 percent reduction in energy costs from your lighting upgrades. Reaching the 25 percent reduction can be difficult if you are only upgrading the lighting in one area of the restaurant, such as the dining room. If you are considering rebuilding, relocating or doing a MRP on your restaurant, however, you have a greater chance of meeting the IRS energy reduction requirement.

McDonalds has partnered with several providers to assist you with upgrading to LED lights. You can calculate your potential energy saving by visiting


The following are the McDonalds preferred suppliers:

The energy reduction is calculated using a qualified software program approved by the IRS and certification must be obtained by an unrelated third party engineer or licensed contractor. Kevil & Kevil can assist in the computation of your eligibility and tax deduction. You may also contact the IRS for a complete list of approved software. Currently, the energy deduction is extended through Dec. 31, 2016, so it is important to determine your eligibility and take advantage of the LED lighting before the 2016 tax year is over.