How to Save on your Business Tax by Going Green!
Although many federal tax initiatives for going green have expired, it’s still advantageous for businesses to take advantage of green business tax incentives. You just have to know where to look for benefits. One of the best databases is the Database of State Incentives for Renewables & Efficiency (DSIRE), which lists federal, state and local programs for renewable energy.
When looking for energy programs, it’s important to investigate all resources. Some utility companies have programs that give benefits to companies beyond just tax deductions. One interesting incentive is the Vow to Hire Heroes Act, which combines offering veterans employment and ecosystem restoration work. Business tax benefits of up to $9,600 per veteran hired are available. All-electric cars are eligible for tax deductions.
Energy Star is another program that offers business tax breaks for some energy programs. It’s a good idea to look through the website before planning upgrades to your business to know where the biggest tax breaks are available.
Even without tax benefits, installing Energy Star products can reduce your heating and cooling costs, lower your energy bills and reduce your carbon footprint, which makes your company more enticing to customers.
Businesses not only need to reduce their reliance on energy, but to reuse and recycle products to keep them out of landfills. Businesses can make donations to charitable organizations for business tax deductions, but it’s a good idea to discuss the limitations with a CPA. Used electronics that have outlived their usefulness in a modern office are typically still valuable enough to be donated to non-profits. Assigning a fair market value to the item provides a deductible amount for your taxes.
Although it can take some time to track down tax incentives and rebates when your business is going green, it’s time well spent to save money on your business tax. Get more information about lending options from Ironhorse when you contact us about financing your renovations.