For Sue Little, the decisionto install an energy-efficient lighting system in her Newburyport, Mass.-basedJabberwocky Books was simple. It promised to save at least $2,350 a year inenergy costs and could qualify her for substantial tax savings, too.
"I’ll know if wequalify when I hand everything over to my accountant for my 2007 returns,"she says. "But in the first five months it has already saved us $2,000 inelectrical costs, so I think it’s a good possibility."
Going green can save morethan the environment for small-business owners operating on a tight budget,it can save their bottom lines, too. With tax breaks available to greenbusinesses, it is now cheaper than ever to make your enterprise eco-friendly.Check out these green ways that will keep you in the black come tax time:
Build green. Investing inenergy-saving office equipment pays off twice once with utility bills andagain with taxes. Through 2008, owners and tenants of buildings can receive adeduction of up to $1.80 per square foot for reducing by at least half theenergy used to heat, cool, ventilate and light a workplace. "This is agreat move for anyone," Little says. "You can save your business alot of money. It’s simple."
Buy a company hybrid. Underthe Federal Comprehensive Energy Bill, quality hybrids like the Honda CivicHybrid, Toyota Prius or Ford Escape Hybrid can yield tax credits ranging from$1,700 to $3,150.
The credits are availableuntil Dec. 31, 2010, but will expire earlier for the most popular hybrid modelsdue to a provision in the bill. When a manufacturer sells 60,000 hybrids, aphase-out period begins after the following calendar quarter, eventuallyreducing tax savings to 25% of the original value. Some models–the Honda CivicHybrid, in particular have already reached the sales mark, but it’s not toolate to take advantage of other hybrid tax savings.
Go solar. Among the cheapestrenewable resources, solar power can provide enough energy to run a businesswith little or no utility costs. Previously, solar equipment was too expensivefor most businesses to consider, but the Business Solar Tax Credit makes itmore affordable. When you purchase fuel cell power plants, solar energyproperty or fiber-optic property, you qualify for a 30 percent tax credit.
Courtesy of the NationalFederation of Independent Businesses. For more information on this topic, visitwww.nfib.com.