One of the ways you can save money on your taxes and expenses is by investing in renewable energy.
Investment tax credits are federal incentives for you to invest in your business. Your business can deduct a certain percentage of these investment costs from your taxes.
How can I reduce my taxes with energy credits?
Investment tax credits are offered in areas of pollution control, energy conservation, green technology, and other methods of economic development.
A few options for investment tax credits include the Reforestation Credit, Rehabilitation Tax Credit, Solar Energy Investment Tax Credit, and Federal Business Energy Investment Credit.
Eligible technologies include solar thermal process heat, solar thermal electric, solar water heat, solar space heat, fuel cells, geothermal direct use, biomass, wind, geothermal heat pumps, and others.
For example, the federal solar tax credit allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. That is a significant cost savings for businesses!
In the state of Michigan alone, there are 74 incentives and policies that support renewables and energy efficiency.
As you look at business expenses for the following year, consider how you might take advantage of renewable energy incentives from the federal government.
You can save some cash and help the environment at the same time.
Check with your Morgan & Associates CPA today to decide which energy credits would be the best investment for your business.