Go Green for Good Business

It’s good to go green—especially during tax season.

Uncle Sam may look favorably upon your company if you made green adjustments last year.

Or, if you’re now getting more eco-friendly, here are a few green company expenses you may benefit from during tax time:

Company car. Did you know American workers spend an average of 47 hours per year commuting through rush hour traffic? This adds up to 3.7 billion hours and 23 billion gallons of gas each year. A hybrid vehicle used for work meetings, deliveries, and other work-related tasks may mean a tax credit, although not all are considered. Here is a list from the IRS.

Making the office energy efficient. It doesn’t matter if you build a new office building, upgrade your space, or build an add-on: The IRS says you may be entitled to many credit and deduction options if you have sustainability in mind.

Renewable energy. Solar panels are all the rage. You may get a tax credit equal to 30% of the price of a solar energy system you install to generate electricity in your building. Other methods of renewable energy may also apply.

Encouraging the green movement. There are many tax deductions and credits available to companies who help others make sustainable choices. For example, the financial group Wise Bread states if you are a contractor building homes, you’re eligible for a $2,000 tax credit for every energy efficient home you build, as long as it meets certain standards set forth in the Energy Policy Act of 2005.

Check your state laws. Tax incentives for going green or offering green products may be available to you. Visit the Database of State Incentives for Renewables and Efficiency to see if you qualify.

Choose green. Simple decisions like encouraging energy settings for computers and other devices can save energy and money year round. Try this: A power strip with an on/off switch can shut down the whole desktop at once. Printers, scanners, and other peripherals that are used occasionally can be unplugged until they are needed. And turn off lights in offices when leaving for the day.