Other Green Business Tax Credits

There is no better time then right now to get in on all the tax credits, financial incentives and rebates that are designed to encourage businesses and people to go green. On the federal level there are many financial incentives out there for businesses.

Some examples of the federal tax incentives are tax deductions for commercial buildings that are energy efficient, tax credit for energy reduction, tax credits for energy efficient appliances and there is a new tax credit for all those savvy green builders for being energy efficient.

The tax credits at state level will attract the renewable energy companies into their region as they offer tax breaks just to get them to come there. For example, Washington state does not charge sales tax on any renewable energy equipment that is made or sold there. A few cities that have forward-thinking are starting to offer green building incentives and “density bonuses” to builders and developers to encourage maintainable land use.

One of the best places to find what is out there for tax credits for your green business is to check out the (DSIRE) Database of State Incentives for Renewables & Efficiency on the Internet. This is a very comprehensive source full of information on federal, utility, local and state incentives that promote energy efficiency and renewable energy. The DSIRE is a project that is federally funded of Interstate Renewable Energy Council and their membership includes local and state government agencies, advocacy groups, renewable energy companies along with national laboratories.

There is a ten percent tax credit from the federal government for the investment or purchase of geothermal energy or solar property. This will include equipment which generates cools, heats or electricity using the solar energy along with any equipment that is used to distribute or produce energy from the geothermal source. The most you can receive from the tax credit a year is $25,000 plus twenty-five percent of the tax balance will be paid after the credit has been applied. If the business already claimed REPC then this credit can’t be claimed. If the project has already been subsidized by energy financing or tax exempt bonds, the credit will be reduced.