The Paris Climate Accord has made climate change hot news lately. But no matter what the weather’s geopolitical impact, it also affects your taxes.
So what’s climate change have to do with your company’s bookkeeping or finances? Well, a high electricity bill can impact on your bottom line. Here are 3 ways to save money by turning to alternative energy sources.
- COST CUTTING – Replacing the use of electric utilities with a renewable energy source like sunlight, wind or rain can significantly cut the cost of your company’s utilities. For example, you can consider harnessing the sun’s rays to heat your water through the use of solar electric panels. You can also consider using a solar ventilation system to maintain indoor air quality. Both of these alternative energy sources could result in lower monthly utility bills.
- TAX CREDITS – The IRS offers business owners the Business Energy Investment Tax Credit or ITC for using renewable energy sources. Companies that use equipment that uses solar energy to generate electricity or to heat or cool the workplace can receive a 30% rebate on their tax return. Business owners will also get a 30% rebate for using fuel cells or small wind turbines. You can also get an additional 10% rebate for using geothermal energy, micro-turbines and Combined Heat and Power known as CHP.
- VEHICLE SAVINGS – If your company has a fleet of vehicles or you offer your employees a car or truck to drive on the job, you may want to consider purchasing a plug-in hybrid or all-electric vehicle. Any all-electric or hybrid vehicles purchased after 2010 may be eligible for a federal tax credit of up to $7,500 depending on the state where you live. States like Florida also offer rebates for buying or leasing vehicles that run on natural gas or propane. Check with your state’s Department of Energy or feel free to e-mail me or anyone on the Brigade Bookkeeping team and we’ll be happy to check the tax laws in your state.
So, regardless of our country’s involvement in the Paris Climate Accord, everyone can save a few bucks by demonstrating a commitment to energy conservation. And, that’s something we can all agree is worth celebrating.