Tax Credits and Deductions for Saving the Environment
Everyone wants to save the environment and it is difficult to argue that we should be environmentally responsible. But you may not know that you can also help your business with tax credits and deductions for energy savings, environmental cleanup, and "green" purchases. Here is how:
- Tax Credits for Environment-friendly Business Purchases
According to the U.S. Department of Energy, you may be eligible for business tax credits by "buying hybrid vehicles, for building energy-efficient business buildings, and for improving th eenergy efficicency of commercial buildings."
- Tax Deductions for Energy-efficient Buildings and Lighting
If you are considering buying or renovating a building for your business, you may be able to get a tax deduction for improving the energy efficiency of the building and for installing energy-efficient lighting. The building improvements may be considered as expenses immediately (not depreciated), with the maximum deduction at $1.80 per square foot of building.
- Environmental Cleanup Costs
Costs to clean up hazardous wastes, including petroleum, may be eligible as tax deductions under the "Other Deductions" category on the Expenses section of your return. Note that you must get a statement from your state environmental agency that your site meets requirements.
