How Green Companies Get Business Tax Breaks
Going green is often thought of as good for the environment, but it can be good for your business as well. There are a lot of business tax breaks for those willing to put forth the effort, you just have to know where to look. Continue reading to learn more about the incentives available to businesses with green practices.
One great way to go green and save money on business tax and energy bills, is through the Energy Star program run by the U.S. Department of Energy and the U.S. Environmental Protection Agency. This program provides incentives for the use of energy efficient technologies in your business. While not all incentives are still available, the technologies themselves can help reduce costs by lowering your energy usage.
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While business tax credits for hybrid cars have expired, qualified fuel cell motor vehicles still have these incentives available. These all-electric vehicles are great for the environment. To find out if you have a qualifying vehicle go to the DOE’s Fuel Economy website. This may also be a great way to help choose your new company car if you’re in the market. Incentives vary based on the battery capacity and by state regulation, but they tend to range between $2,500 and $7,500.
Renewable Energy Incentives
One of the largest and longest lasting incentive is for renewable energy home systems. Good in full through the end of 2019, this incentive will cover 30 percent of solar powered systems for both heating and water in any residence. At the end of 2019 there are plans for the incentive to be incrementally reduced until its expiration in 2021.
If you work with a nonprofit or company that partners with a nonprofit you may be eligible for a tax incentive for recycling your electronics. With most people upgrading their electronic devices every few years, in most cases the old devices still have some life left in them. By donating these items for reuse you’re keeping them out of the landfill. If your charitable contribution exceeds $500 you’ll want a form 8283 and, of course, to keep your receipt.
Once you know where to look for business tax breaks, you can start determining which your business already qualifies for, and what changes can be made to help keep your business environmentally friendly. With these incentives available you can feel great about doing what’s right for both your business and the environment.