One of the best things you can do for your business and community is to reduce your carbon footprint. Known as “going green”, this activity is heavily incentivized by the government – as long as your company meets the requirements set forth. You’re probably already familiar with some aspects of this in the form of Energy Star equipment; here, we’ll apprise you of four ways to benefit from the associated business tax.
- The Vehicle Tax Benefits
If you and/or your employees drive so-called alternative vehicles, then you may be eligible for business tax credits. For example, if you bought the car before 2017, are the primary operator and drive it largely on the US mainland, then you might be privy to the Alternative Motor Vehicle Tax Credit depending on you’re the vehicle’s fuel economy.
Similarly, there are tax credits available for electric plug-in cars. It has to have been purchased after 2009, and must meet a handful of requirements listed on the government website. You can receive tax credits ranging from $2,500 to $7,500 for these automobiles.
- Energy Star Qualifications
This was the first program of its kind implemented by the US Department of Energy and the Environmental Protection Agency. It provides business tax credits for a large variety of products that meet the Energy Star requirements and bear its recognizable insignia. Many of the products are no longer viable for receiving tax credits; however, their natural energy-saving mechanism still benefits you.
- Business Tax Credits for Going Green
This one, in particular, is for ‘green” apparatuses inside of the home or office. If you are employing solar water heating or solar electric, then there’s a tax credit covering 30% of the cost – as long as the devices you’re using were bought after 2016 and before 2020. The amount you can save drops down predictably for each year after 2019, however, from 30% to 26% for 2020, and then down to 22% for 2021.
- Charitable Endeavors
This is called the charitable contribution tax, and Form 8283 of the IRS Tax Code explains the parameters fully. How much you save depends on how much you give – up to a capped amount. For example, if you donate less than $500 worth of clothing and/or electronics to approved organizations, then forms aren’t necessary.