Tax season is upon us and the deadline for filing is only weeks away. In an effort to encourage small businesses to participate in more environmentally friendly practices, the US government has enacted some energy tax credits. This tax season, see which new eco-conscious installations and practices can earn you a greater refund from 2018. In addition, you can consider adopting some of these practices for future credit.
Energy Tax Credits
- Solar Investment Tax Credit: The installation of green energy, like a solar panel, can mean big tax breaks from businesses. A solar investment tax credit can provide up to a 30% tax credit for businesses that install, develop and/or finance solar energy property.
- Alternative Motor Vehicle Credit: If you are in the transportation industry or your business has many company vehicles, you can apply for the use of alternative fuel source vehicles. The credit is for up to $8,000 for purchasing hybrids and electric vehicles, for example.
- Rehabilitation, Energy, and Reforestation Investments Credit: The best way to earn some real money is by investing in sustainable resources that help preserve the environment. The credit reaches up to 10% (limited to $10,000 per year) for renovating or restoring an existing building and ensuring it is more sustainable.
- Alcohol Fuels Credit: If you are in the fuel production industry, your business is likely eligible for the Alcohol Fuels Credit. It covers the cost of producing alcohol-based fuels like methanol and ethanol.
Another example is an “on-site renewables” tax incentive. For this energy tax credit, you need to provide the IRS with the cost of the system and its period of use, in addition to some other specific documentation.
To find a small business energy tax credit that you qualify for, start with the US Small Business Administration (SBA). The SBA offers several federal tax credit IRS forms and documents for easy filing and eligibility. The next step is to speak to your accountant to properly file your taxes by including your latest eco-conscious efforts.
The best and easiest way to ensure your business can take advantage of these tax credits is to contact your local SuperGreen Solutions, Professional, today. Let us make you a more sustainable business by lowering operational costs and increasing your tax refund! Find your nearest SuperGreen Solutions consultant here.