How do Continuous Improvement teams fit in with your Lean initiatives? The cost of the improvement is reduced by the increase in the value of your property. Not only will you see the savings each month in your electric bills, but you will also qualify for a $1500 tax credit for your doors and one for your windows as long as you get the energy efficient types that meet the Energy Star Standards.
Of course there is one thing that may make you exempt in regards to home repairs and them not qualifying you for a home improvement tax reduction, and that is in the case of remodeling. For example if, during the time of your ownership, tiles fall off the wall, to replace them would be a repair, whereas if the house needed re-tiling at the time of the purchase, that would be an improvement and not deductible.
Lean initiatives can and should piggyback on these Continuous Improvement teams and similarly, Continuous Improvement or Six Sigma teams should use their Lean Future State Implementation Plan to determine the projects they will work on. These Future State plans are developed for bottom line Value Stream improvement and are both a road map and baseline measure of return for Lean implementation.
According to the current internal revenue code, from the time real property is placed into service until the time the title is transferred or reaches the depreciable limit set by the IRS, investors can deduct an amount for cost recovery each year on the physical structures (called “improvements”) as an income tax deduction.
Consult with the IRS regarding the Katrina Emergency Tax Relief Act as it increases the permitted qualifying house improvement loans. You will save on your monthly electricity costs to run them plus all across the country manufactures are running discounts and rebates on these Energy Star products.