Eco Credits: How California Energy Credits Help You Save Money On Your Tax Bill

                                                                                         

If you are a Southern California-based business owner, there are tax credits available of which you might not be aware. If you are trying to save energy at work, you are well on your way to earning green tax incentives. Available from both the state and federal government, eco credits can add up to big savings on your yearly taxes due.

You will want to consult with a certified public accountant that has a focus on corporate tax planning. Your CPA will let you know if your business is located within one of forty-two statewide enterprise zones. These zones are classified as economically at-risk areas where, if businesses are located there, those companies may be eligible for a number of helpful tax credits, including green tax incentives.

If you are preparing to purchase a vehicle for your enterprise-zone based company, keep in mind that you may be eligible for California energy credits. Part of the requirements for these credits are that the vehicle can only be used within the enterprise zone, so bear this in mind. However, the California energy tax credits are substantial; they can be equal to the sales or use tax that you paid when you purchased the car or truck. These same type of green tax incentives may also be available for technology hardware including computers, printers and scanners that you have purchased for use in a business in an enterprise zone that works on energy conservation, pollution control, and research and development in these same areas, as well as processing and manufacturing. These sorts of green energy tax incentives may help you save up to seven to nine percent of the cost of purchases that qualify for these benefits. Similar credits may also be available at the federal level as well, which your CPA can determine for you.

If your company works on the research and development of pollution and energy control technology, you may receive state and/or federal corporate energy tax credits because of this. The research and development must be based in California in order to qualify for these California energy tax credits. These state tax incentives add up quickly, because they can be equal to more than six cents for every dollar you spend on business expenses, and combined with federal corporate energy tax credits, the benefit can swell to thirteen cents on the dollar.

The building in which you perform your work may qualify you for California energy credits. If your company building is more than fifty percent more energy efficient than a similar standard building, you may qualify for a credit of $1.80 per square foot. Partial green energy tax incentives are available for buildings that are less than fifty percent energy efficient.

Consult with a knowledgeable CPA who can answer your questions about green tax incentives for which you may be eligible.

About the author:
Wayne Hemrick writes about california energy credits and eco credits.

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