Tax incentives

The increased cost of energy, the country’s dependence on foreign oil and the environmental impact of current energy use has inspired many companies to go green. Companies are also seeking ways to exhibit their green corporate citizenship.

Current economic challenges may increase demand for incentives to go green. Federal and state governments are expanding tax credits, tax incentives and grant programs to help companies produce energy from renewable sources. Many of these credits and incentives are designed to foster the use of renewable energy sources to sustain business operations.

Businesses need to do their homework to find out how they can take advantage of these new tax incentives and how going green can affect their bottom line in a positive way.

IRC Section 30D provides a credit for businesses and individuals who purchase or lease and place in service a qualifying plug-in hybrid vehicle. The credit is available in three forms: a $7,500 maximum credit for qualifying cars and trucks; a 10% credit up to $2,500 for low-speed vehicles, motorcycles and three-wheeled vehicles; and a 10% credit up to $4,000 for plug-in vehicle conversions.

Source : djc.com, by Donald Corbett, July 30th, 2009