Posted on: April 26, 2018 by: Deshvidesh
The Earth is such a beautiful planet. We only have one to live on. If you’re paying attention to the news, you will see the government has deregulated environmental protection standards on companies. So what does this mean? It gives companies more rights to abuse the environment and not think of the future consequences to our children or others. And not only that, the US has signed out of the Paris Agreement for climate change, installed fewer standards for car companies which can allow for increased emissions, and removed protection for endangered species and national parks to name a few changes. This all has happened in about a year.
For now, at least the new tax bill is on Mother Earth’s side. The Internal Revenue Service (IRS) has welcomed and granted tax credits to those businesses and individuals who use resources that are less damaging to the earth.
As a Business what Tax Incentives do I get?
As a business, the IRS grants Energy Investment Tax Credits (ITC) to those that fulfill the requirements of 1) owning or build the equipment 2) placed into service the year you take the tax credit 3) the technology on the equipment satisfies the minimum guidelines. Below is a table provided from Energy.gov on the tax credit for the different types to technology.
Now you may be asking, but I don’t pay taxes at the business level? If you’re not a C Corporation, that’s correct! So these Credits will be passed down to you through the K-1 into your personal.
But what if you don’t own a business?
Don’t worry, the IRS has incentives for you too! Energy efficient products for the home are eligible for tax credits if they meet the technical standards for a $500 tax credit – these can apply to items such as heating and cooling equipment, appliances, and lighting. Solar, wind and geothermal equipment has up to a 30% of cost tax credit. And most electric cars can help alleviate your tax burden with a $7,500 tax credit.
Ask you tax accountant what kind of tax savings it can have for you as everyone’s situation is different. Go Green, not only for the environment but to have more money in your pocket.
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