New and established businesses are becoming more and more energy conscious as they create business plans and make decisions for the future. However, the costs associated with transforming a building into an energy-efficient hub can be great. With businesses trying to protect their bottom line, how can anyone expect them to be able to fully invest in costly energy-efficient building materials and improvements? Luckily, there are tax incentives to help ease the transition.
Recently, the president signed an extender bill called Protecting Americans from Tax Hikes Act of 2015. The bill itself is in response to some incentives and tax breaks associated with a pre-existing bill that expired at the end of 2014. The new extension creates some permanent incentives while extending other incentives through this year.
Energy-Related Tax Credits
A few particular tax credits that are especially important to energy-efficient business are the following:
- Section 179D allows for tax credits to extend through 2016 that include energy efficiency improvements.
- Solar Tax Credits are extended through 2022 with a phase out process starting in 2020.
- Credits for energy created by renewable resources has been extended through 2016.
What Does This Mean for Business?
Tax incentives that promote energy-efficiency in business are a terrific way for businesses on any income level to participate in the movement toward a smaller carbon footprint. New businesses can compete with established businesses because the tax incentives help level the playing field. Energy-efficiency is in and being a part of that movement promotes the business as being cutting edge and aware. This tells consumers that the business is resourceful and capable of participating in a movement that impacts the world as a whole. The whole concept can go a long way in establishing trusting relationships by simply incorporating improvements that the public as a whole see as advantageous.
Many businesses want the opportunity to “go green” or at least be more energy efficient, but those improvements can come at a high cost. This bill allows businesses to gain the financial confidence to make the improvements within their business that will be better for the environment and ultimately improve their energy spending over time.
The impact is two-fold in that it promotes financial responsibility over a period of time by making improvements that will ultimately save money and simultaneously starting a dialogue with consumers that says that the business is conscious of energy efficiency. This is a total winning concept for business models.
Need Assistance With Your Business?
The extension of incentives that this bill offers is a great boost to business. Whether you are a new business looking for tips or a seasoned business looking for improvements, you can benefit from learning more. If you need assistance with understanding the advantages of your business going green and how your business plan can include that, reach out to a knowledgeable business attorney today. Attorney Kristina Reed is located in Sacramento, California. Her specialized experience with small and large businesses can assist you in planning for your business and future. Reach out to her today for more information.