Reducing Your Tax Bill by Going Green

Renewable energy technology has come a long way and is..

Renewable energy technology has come a long way and is constantly improving in terms of both efficiency and sophistication. There have been a series of legislative actions taken over the last several years that offer various levels of tax breaks for individuals and businesses who make the switch to more sustainable, renewable energy sources. There has never been a better time for businesses looking to reduce their tax bill, as well as their carbon footprint, to invest in a greener and more sustainable future.

Not only does it make good business sense to invest now and reap the rewards for years to come in the form of a reduced tax bill; it is also a fantastic way of promoting your company. Consumers are showing increasing concern for how green the businesses that they buy from are and are beginning to turn their backs on businesses who demonstrate an apathetic attitude towards environmental issues, making green technologies a doubly good investment.

Basic Improvements

Many of the most basic improvements you can make to increase your energy efficiency are steps that you can replicate in your home to save you some money outside of work too. Look for opportunities to make small changes that can cumulatively have a significant impact on your carbon emissions. For example, whenever basic maintenance work is carried out in your building, view it as a chance to make some adjustments behind the scenes; whenever you can, add insulation to your building so that any heat generated will last longer, allowing you to reduce your heating bill.

Whenever you carry out any such work, even if it only involves small changes, then consult with someone with a masters in taxation to see if you can claim any tax credits. If you don’t know any such individuals then consider whether sending one of your team to do an online MST degree could be of benefit to your business.

Look for The Energy Star Logo

The Energy Star test is a test designed to measure how efficiently products use water, with products that pass the test bearing the logo and offering a reduction of between 10% and 50% in water usage. Tax credits for installing these products equate to a roughly 30% discount.

Generate Your Own Green Energy

Installing solar panels or wind turbine technology will earn you some of the biggest reductions on your tax bill. You can recoup as much as 30% of the cost of installing such infrastructure and there is no cap on the amount of money you can write off against your tax in this fashion. Not only do the tax breaks represent a large reduction in the cost of installing the infrastructure to generate your own energy; it will save your business a great deal of money in the long run by reducing the amount of power your business has to draw from the grid.

There are numerous other ways that you can make your business eco-friendlier. Not only will doing so help you to make savings in the short term but it will improve your company’s image in the long term and increase your trustworthiness in the eyes of your customers.