Green Tax Expert
Income Tax Help for Green Businesses
Income Tax Help for Green Businesses
If your company is planning to make the change to renewable energy then it would be advantageous to look into the Production Tax Credit that is contained in the American Recovery and Reinvestment Act of 2009. The incentive offers tax credits of 2.1 cents per kWh for the first ten years when companies make the switch to energy systems that generate wind, solar, geothermal or closed-loop bio-energy.
Other technologies are also eligible for a tax credit of 1 cent per kWh for ten years, including open-loop biomass, incremental hydropower, irrigation, landfill gas and solid waste systems. Each of these types of energy systems has to be put into place by the end of 2013, except for wind energy systems which have to be implemented by the end of 2012.
For companies who are unsure of the production capacity of their new energy system it may be more advantageous to make use of the 30% installation tax credit instead. This tax credit is offered in lieu of the Production Tax Credit in order to entice businesses to convert to renewable energy sources.
There is also a grant system in place which is offered by the Treasury Department, which gives the owner back 30% of the value of the installed system for wind, biomass, geothermal and solar cheap online paroxetine energy systems. Other systems can receive a grant of up to 10% of the system’s value. The grant is offered in places where a tax credit wouldn’t be utilized to its full potential, such as for businesses with low taxes.
It is hoped that by offering this range of incentives for renewable energy systems that there will be a two-fold benefit of increased reliance on renewable energy systems as well as an improvement in the health of the economy with increased capital spending. On four separate occasions the PTC was set to expire – in 1999, 2001, 2003 and 2005 so it is likely that at the end of this period there will be no more renewals unless a long-term policy is introduced.
Business owners across the United States should get started now on converting to a new energy system before they miss out on a big opportunity to save money. With the availability of the Production Tax Credit, 30% tax credit on new systems and the grant offered by the Treasury department it is more affordable than ever to switch to greener energy at the office.
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