Most business owners look for ways to decrease their taxes. Fortunately, there are many things you can do to offset your taxes. For example, there are many tax incentives for going green. If your business could benefit from solar panels, or transitioning to electric cars, there are incentives in place for making these changes. There are also additional green changes you can make on a smaller scale as well.
Your Charitable Contributions
Most people know that making donations to charities provides tax incentives for everyone. Donations valued at $500 or less don’t require any special forms. Conversely, larger donations do require tax form 8283 to get credit. Plus donations don’t have to be monetary. For example, there’s a tax incentive for donating electrical items like computers and cell phones. Electronics recycling is an additional area where you can rack up some tax incentives.
Energy Star Products
You can also receive tax breaks for using energy star products. These products are designed to be more efficient and leave a smaller carbon footprint on the world. In addition to tax incentives, energy star products tend to decrease your energy consumption, thus lowering your electric bill. Not all energy star products provide tax incentives, however, less energy consumption and smaller bills are still great benefits.
Alternative Motor Vehicle Tax Credit
If your company utilizes vehicles, you could benefit if these vehicles fall into the category of an alternative motor vehicle. These are usually electric cars and/or hybrids. These cars may be eligible for a Qualified Plug-In Electric Drive Motor Vehicle Credit as a tax incentive. You’ll need to check with the IRS to see if you have a qualifying vehicle. You’ll need to familiarize yourself with the eligibility qualifications. However, there are some general guidelines that you should be aware of. Your car or cars should be:
Purchased before 2017
Owned or leased by you
Driven primarily in the U.S.
There may be other qualifying criteria. However, you’ll need to verify the details and requirements. You may be eligible for various tax incentives if many of the products or vehicles used for your business fall into the green category.