The benefits of businesses choosing to better commit to environmental sustainability go beyond making a positive impact on the community and the world at large. For companies that strive to ‘go green’, their decision to implement more effective commercial waste solutions and energy efficient guidelines into their agenda can ultimately provide a more lucrative incentive for them, in addition to the ecological assistance they’re providing.
However, surveys continue to show that not enough local businesses are seemingly aware of various tax incentives they could be entitled to for incorporating more sustainability practices. One survey conducted by Grant Thornton LLP found that slightly less than 20% of food and beverage businesses in the U.S. were taking advantage of local ‘green tax’ incentives they were entitled to, while 31% of those companies surveyed were completely unaware that certain tax incentives for corporate sustainability even existed.
This lack of tax incentive awareness makes businesses not only miss out on various eco-friendly instituted tax breaks, but also means they’re not instituting the values that their consumers are asking of them.
Studies continue to show that consumers want more environmental accountability from the businesses they support, with 63% of Americans wanting corporations to influence environmental change, and 87% of American consumers admitting they are more inclined to make a purchase through a company that advocates an issue they care about.
To put this all into perspective, businesses who make a commitment to “going green” will have their customers’ best interests at heart, but are also potentially eligible to be compensated by the government for their actions.
To gain a better understanding of how companies can financially benefit from corporate sustainability, let’s take a look at some existing tax incentives businesses can take advantage of by going green.
Purchasing Energy-Producing Equipment
There are several distinct tax credits and deductions the U.S. government offers businesses who make eco-friendly conscious decisions, contributions, and purchases. One of the more popular ones is investing in energy-producing equipment.
This can essentially apply to any form of technology or equipment that generations electricity by harnessing any naturally existing energy flux, such as:
● Combustion gases and more
A prime example of an energy-producing equipment purchase tax incentive is the Business Energy Investment Tax Credit, which is a federal tax credit that renders a business eligible for up to 30 percent of the cost for any purchase of renewable energy-producing equipment.
This tax credit specifically applies to any company that buys or invests in any of the following forms of technology:
● Solar water/Space heat
● Geothermal electric/Heat pumps/Direct-use
● Solar thermal electric/Process heat
● Wind (all)
● Municipal solid waste
● Combined heat and power
● Fuel cells using Non-Renewable Fuels/Renewable fuels
Green and Solar Investments
Generally investing in various ‘green’ technologies or products can also provide beneficial tax incentives for businesses of all sizes. One of the more prominent corporate sustainability tax credits in the past five years has been the Solar Investment Tax Credit, which makes businesses eligible for a 30% tax credit for purchasing, installing, developing and fin/or financing any forms of solar energy property, such as installing solar panels upon a roof.
● Businesses that use vehicles for their transport or travel needs can also look into applying for various ‘green’ vehicle tax credits, such as the Alternative Motor Vehicle Credit and the Biodiesel and Renewable Diesel Fuels Credit, which compensates companies for using or selling more energy-efficient vehicles and fuels.
● There’s also the Qualified Plug-in Electric Drive Motor Vehicle Credit, which allows businesses that have purchased all-electric or plug-in hybrid vehicles to receive up to $7,500 in tax credits for their eco-friendly investment.
Commit to Sustainable Commercial Waste Services
Being more aware of how your business can benefit the environment while also benefiting from the government can help your company better commit to more sustainable, eco-friendly practices.
Another way to do your part in applying more environmentally-conscious practices is investing in sufficient commercial waste services. When you need viable commercial recycling and waste management solutions, contact LJP Waste Solutions to learn more about how we can help your business become more environmentally sustainable, or give us a call at 507-625-1968 to speak directly with one of our commercial waste management experts.