Spring 2009 issue of Horizons

Raise Your Expectations CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

may qualify for tax credits. Some states offer credits for manufacturing renewable energy property and additional credits for the sale of electricity that is produced from a renewable energy source. Energy-efficient equipment consists of energy star certified appliances like water heaters and refrigerators, but also includes doors and windows. These items, in particular, are typically more expensive than models that are not energy star certified. Federal credits exist that manufacturers of energy star certified appliances are eligible to claim. Homeowners may receive a credit for making energy-efficient improvements to their home. Contractors also may be eligible for tax credits if the construction meets energy-saving requirements. These are just a few of the tax incentives that the federal and state governments offer to entice taxpayers to go green. Balancing the cost of “green initiatives” with the need to maintain a profitable business can be difficult. Thepotential for taxcredits, coupledwitha leanphilosophy to root out all waste, can make your sustainability initiative a profitable endeavor!

Things to Think about from a Tax Perspective

By Wayne Danneman

Another way to offset some of the cost of “green” initiatives is by obtaining various available tax credits. These credits vary from investment in technology, to production, to conversion, to residential consumers. They can be issued in many forms, such as income tax credits, sales tax rebates and/or property tax abatements. The benefits are offered at both federal and state levels. Some of the areas that should be considered are alternative fuels, renewable energy and energy-efficient equipment. Alternative fuels refer to electric, compressed natural gases, ethanol and biodiesel. Many businesses are faced with the decision as to whether to buy alternative fuel vehicles – a hybrid or electric motor vehicle. Credits exist both for the purchase of these vehicles and for the conversion of an existing traditional vehicle’s motor to running on an alternative fuel like compressed natural gas or biodiesel. In addition, if a company sells or produces these alternative fuels, they also could qualify for a tax credit.

Questions? Contact:

Wayne Danneman Manager Manufacturing and Distribution Services Group 314.290.3363 wayne.danneman@rubinbrown.com

Renewable energy sources include wind turbines or solar energy. Installation of these items at a business or home

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