5 Ways To Save On Your Business Tax Return By Going Green
As a business owner, managing your business taxes to keep within budget is crucial to keeping your books balanced. Every business owner wants to keep their taxes low and their returns high. Taking advantage of valuable opportunities to gain control of your taxes and better your business practices is sensible and beneficial to reaching these goals.
By incorporating green practices into your daily business routines, you earn tax credits from the government as rewards. Not only do these changes soften the blow of tax season for your company, but the new eco-friendly and community-focused practices give potential customers the chance to see the humanitarian side of your brand.
Energy Star Program
Utilizing Energy Star-qualified products as a part of your business benefits your bottom line in many ways. While the tax benefits of some products expired in 2011, many of these energy efficient devices are still incentivized with tax breaks and credits all the way through 2021. These energy efficient products also cut down on electrical bills, helping to reduce yearly costs.
Give Back, Feel Good and Save Money
A lesser known source of benefits for business taxes are the breaks a company gains through hiring veterans. The Vow to Hire Heroes Act rewards businesses with thousands of dollars in tax credits for each veteran hired. By prioritizing hiring veterans in your community, you not only reduce your taxes but you also assist the brave men and women in your community that served the country.
Electrify Your Business
While all-electric vehicles are still picking up speed in popularity in the private market, they have become invaluable for the savvy business owner looking to reduce tax payments. All-electric vehicles, otherwise referred to as qualified fuel cell motor vehicles, earn your business credits for being eco-friendly.
Renewable Energy Rewards Your Wallet
A big source of relief from business taxes is the federal tax incentive for businesses with renewable energy systems. As conscientious businesses move towards being more eco-friendly, using renewable energy resources brings you thousands in tax credits to put towards your energy-related costs.
A more widely-known way to cut back on taxes is making charitable donations during the year. A documented donation to a charitable organization or event get you a percentage of the value of the donation deducted from yearly taxes. These donations don’t need to be monetary. Items can also be donated and reported. The value of item donations is determined by you when it is documented by your company. This allows you to get the proper value in tax credits for your donation.