Save On Taxes While Saving Energy
Tax season is here and everyone in the Dallas-Fort Worth area is making a mad dash to find the most deductions before they officially file. While many people automatically turn to their receipts and healthcare deductions, there are some major energy savings deductions that need to be taken into account. This is especially true if you are part of a business that has practiced an energy savings program within the last tax year.
Residential and Commercial Taxpayers Alike Benefit from Saving Energy
Even if your business is one that practices energy savings, who’s to say the some of these habits can’t carry over into your home life? That’s right, taxpayers in the residential and commercial brackets can benefit from practicing efficient energy use.
Texas residents can benefit from the Residential Energy Efficiency Property credit if they have recently made energy-saving improvements to their homes like:
- Solar powered equipment
- Wind turbines
- Geothermal heat pumps
- Fuel cells that generate at least 0.5 kilowatts
Enjoy the Business Energy Investment Tax Credit
Although it is a little more difficult for businesses to become eligible for energy savings tax deductions, credit is given where it is due. Some of the eligible efforts for large and small businesses include:
- Solar technologies
- Fuel cells
- Small wind turbines
- Geothermal systems
- Combined heat and power
What Are My Actual Deductions?
Since these credits usually adjust from year-to-year, the precise numbers are difficult to predict. However, at Priority Power Management we believe in showing your business the financial beauty behind the savings. Here are some of the most recent stats on the expenditure percentages of different savings categories.
Most equipment that uses the sun to generate energy is considered eligible for deductions of at least 30 percent of energy expenditures. Eligible examples of deductible solar technology include:
- Hybrid solar lighting systems
- Solar space heating and cooling
- Solar process heating
Fuel credits are great because they don’t have a maximum credit and are 30 percent of your business expenses. Keep in mind, however, that your business is only eligible for this credit if your fuel cells have a minimum capacity of 0.5 kilowatts. There is also a credit capacity of $1,500 per 0.5 kilowatts per location.
What if You Produce Tax Credit-Eligible Technologies?
Even if your business is one that doesn’t necessarily practice saving energy through a program, you can still benefit from the eligible technologies tax credit. If your company is one that produces technologies that are eligible for tax credits, you may, in fact save money on your taxes. This depends on the tax year and what is deemed eligible.
Start Racking Up Your Tax Credits with Help from Priority Power Management
If you know that your business is leaving valuable tax credits on the table each tax season, it may be time to make a change. Priority Power Management has years of experience with helping businesses like yours create energy savings programs that produce results. Contact us today to schedule your consultation with our team.Back to Blog