Small Business Cents

[#1]

Small businesses can cut more than 25% off of their energy expenses when they follow an energy saving plan.  If your business is strapped for cash or you want to minimize costs, try saving energy to save money.

Fortunately, the government recognizes the importance of energy efficiency and sustainability and provides small businesses with great incentives to go green. Read on to learn more about how to save money through energy-saving tax credits, grants and other incentives.

Energy Efficiency Tax Credits

Renewable Energy Production Tax Credit. The new law extends tax credits for facilities that produce electricity from wind, geothermal energy, waste, hydropower and other types of renewable energy until Dec. 31, 2012

Energy v. Production Tax Credit. If you invest in energy efficiency projects after the end of 2008, then you can choose to receive the either the energy investment tax credit or the production tax credit.
The energy investment tax credit is a 30% tax credit, while the production tax credit credits you with 2.1 cents for each kilowatt-hour of electricity produced.

Credit for Alternative Fuel Vehicle Refueling Property. Business owners that have qualified property are eligible for a 50% credit with a limit of $50,000. If the alternative fuel used is hydrogen, then you receive a 30% credit with a limit of $200,000.

Energy Grants

If you decide not to apply for tax credits, you may be eligible for a renewable energy grant for services placed in 2009 and 2010. If your energy facilities meet the requirements and will be placed in service before 2014, then you may be eligible for a grant that is 30% of your investment in the energy efficient facility.

State Incentives

Tax credits, grants, loans, and rebates are also available at the state level. Each state controls their own energy efficiency budget, so incentives will vary. Check out the Database of State Incentives for Renewables and Efficiency, funded by the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE), for more information on local and state incentives in both renewable energy and energy efficiency

Other Incentives

If your business uses electricity that is produced by a renewable source of energy (like wind), you can opt for (1) a tax credit based on the amount invested, (2) a tax credit based on the energy produced, or (3) a grant. Read more about funding options for renewable energy on Business.gov.

Want make energy efficient upgrades but don't know where to begin?  Check out this article for more savings tips.

A summary of energy incentives for businesses is outlined in the American Recovery and Reinvestment Act (ARRA).  For details and more information, read this guide from the IRS's Energy Incentives for Businesses in the American Recovery and Reinvestment Act.

Resources

Green Business Guide from Business.gov

Energystar.gov

Improving Energy Use and Efficiency for Small Businesses

[#2]

Are there any tax credits for using renewable energy for homes. That should be a big motivators for home owners to plan on installing solar or wind based energy generation. 

valopia.com

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This post was edited to remove acommercial link.  Read our Community discussion policies. 

Message Edited by NicoleD on 01-21-2010 10:40 AM

[#3]

Re4All -  Here are Energy Star's Federal Tax Credits for Consumers

[#4]

This is great stuff, thanks so much!