In an economy that hasn’t fully recovered from the Great Recession, it’s worth searching for new ways to maximize revenue and cut costs when possible. Going green is a new tactic more and more businesses are employing to not only help save the environment, but to also help save on taxes.
Making an effort to become more eco-friendly can pay off in the form of tax breaks offered by the government as a reward for being environmentally conscious. Businesses can get involved with several different types of programs and receive rebates, tax credits, and tax write-offs.
Companies can also reap financial benefits outside of taxes. Going green means using more efficient energy sources, and over a period of time the cost to run those sources is much less than traditional energy such as electricity or natural gas. Additionally, businesses that are environmentally conscious can create a more positive brand image and are often seen by potential customers as more caring and honest as other organizations that haven’t made efforts to go green.
Corporate Tax Breaks for Going Green
The government offers several tax breaks for businesses that make investments into renewable energy. Tax breaks can come in the form of rebates, refunds once taxes are filed, or as reduced rates before filing. Often, the incentives for going green that offer the most savings for the company are related to reducing traditional energy usage.
The government is keen to help businesses start looking for more efficient, alternative, and eco-friendly energy sources in an effort to slow the rate at which the country is currently consuming electricity. Investing in renewable energy systems for you company can earn you a 30% tax credit, which is a huge financial benefit for companies looking to maximize rebates and savings.
There are additional, federal incentives for moving to greener, more sustainable technologies for businesses that operate out of areas that are often threatened by natural disasters. There are also credits and rebates offered at the state level; often, you can earn grants for green building projects.
All the investment options that allow for a tax break can be overwhelming, but a professional can help ensure that you are making the most out of all the incentives you may qualify for and will educate you on the risks and responsibilities involved for a business interested in earning tax credits or rate reductions. A CPA can also help companies looking to make the switch to eco-friendly operating easier by searching out the biggest and best tax breaks available.
Save on Taxes – and More
Although switching a business to a greener operating setup can require an upfront financial investment, in the long run the changes often pay for themselves in the form of more efficient systems. If a company switches to solar power, for example, it will start saving immediately on energy costs. Over time, those savings can add up to cover the initial cost required to enable the business to run on solar power.
Enjoy More than Just Financial Benefits
Another way going green pays off for your business is through an improved reputation. More and more consumers, especially those on the West Coast, are growing concerned about how companies take responsibility for their communities and the environment in which they operate.
Consumers tend to view green businesses as organizations that are responsible and that truly care about others. Businesses that make conservation efforts, or create plans to reduce pollution and waste, for example, could then experience an influx of customers who chose to spend money with the company in order to support those efforts to go green. Being eco-friendly makes a company seem trustworthy and honest because its actions have shown that it cares about more than existing to make money.
This article is a guest contribution by Georgia Webster. Georgia is a freelance writer and blogger with a real passion for all things green related. When not behind the screen, Georgia likes to do extreme sports, her favorite one is windsurfing and wakeboarding. You can contact her via G+.
