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Tax Benefits of Going Green

It pays to be environmentally conscious. Literally. Not only is being green good for the world we live in, but it can be good for your finances as well.

In an effort to encourage sustainability and good practices, the US government provides certain incentives, tax breaks, and refunds for energy efficiency, both in your personal life and your professional life.

Save on Gas and Taxes

There was a time when any sort of hybrid vehicle would get you a tax credit. While that’s not the case anymore, you can still save by buying an all electric vehicle or a hybrid. With an electric vehicle, you can get up to $7500 in tax credit. A plugin hybrid won’t get you quite as much, but it can still get you a few thousand.

Just remember that this applies to new cars, not used.

Home Improvements

Looking to update your home or office? Make sure you stay environmentally conscious. You can get tax breaks for a variety of home improvement items and upgrades. Adding solar panels, solar powered heaters, wind turbines, fuel cells, and other renewal/self-sustaining energy sources gets the biggest return.

For these items, you can get up to 30% back in tax credits. Not to mention you’ll decrease utility costs in your home.

You can also get credit by utilizing energy efficient items such as certain insulation, doors, windows, roofing materials, and more. If you’re unsure whether an item qualifies, try asking your carpenter or supply store.

Donations

Donations made to any non-profit are technically tax deductible. But if you really believe in saving the planet, consider donating specifically to a green initiative. Just make sure they qualify for tax deductions.

You can also get tax breaks by recycling and donating equipment to certain electronics recycling companies. These companies are usually eager to advertise their tax benefits, so finding some options shouldn’t be too difficult.

Don’t Pay Too Much on Taxes

No one wants to pay more to the government than they have to. Yet, every year, people and businesses overpay on their taxes. Make sure you’re taking advantage of all of the tax breaks available to you. Meet with a tax professional, and get your taxes done right.

For tax and accounting help in Springfield, Ohio, contact LWS today.

Posted by admin | in Business Tax, Individual Tax