Emission Credits And How They Can Help California Businesses

                                                                                         

If you own a California-based company, and you are looking for ways to save money on business expenses, you may be in luck. If your company is located within one of California's forty-two enterprise zones, there are several California tax incentives for which you may be eligible. Although many companies are conducting business within the state's enterprise zones, most are unaware of these California tax incentives and thus do not take advantage of what can be very large savings for your business. Some of the best incentives have to do with emission credits.

Both the state of California as well as the Federal government want to make it easier for businesses to become more energy efficient, and this has a positive impact on the way companies use transportation for moving products and services to and from their headquarters, to making deliveries of products, to moving employees around efficiently. If you use energy efficient vehicles for conducting business, both the state and the federal governments may reward you with vehicle tax incentives and emission credits.

If you purchase a business vehicle that runs on an alternative fuel, you might be eligible for alternative fuel credits. Fuels that qualify for these types of alternative fuel credits include hydrogen, liquefied petroleum gas, liquid fuels containing eighty-five percent or greater of methanol, as well as liquefied or compressed natural gas.

Another way that your business can gain a tax advantage is to buy a business vehicle that qualifies for the state's hybrid tax incentive. Generally speaking, if your companies buys low-speed electric vehicles, plug-in hybrid electric vehicles, fuel cell electric vehicles, battery electric vehicles, or those with hydrogen internal combustion engines then you should qualify for a hybrid tax incentive.

The amount of the hybrid tax incentive that your company can gain will depend on several factors, including the fuel economy of the vehicle you purchase as well as the weight of the vehicle. The heavier the vehicle, the greater the vehicle tax incentives you may receive, with credits ranging from $400 up to $32,000. The higher the miles per gallon, the more you will save as well. If your new vehicle is very fuel efficient, you might see vehicle tax incentives ranging from $250 to $1,000.

Although new vehicles using green technologies may initially cost a bit more to purchase, there are many benefits that offset the costs. At both the state and federal level, you can receive emission credits that bring the costs down considerably. Your knowledgeable certified public accountant can explain more about how your California company may benefit from emission credits.

About the author:
Wayne Hemrick writes about--vehicle tax incentives.

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