The IRS recently reminded taxpayers of the clean energy tax credits available to small businesses in 2023. These credits include:
– SOLAR POWER CREDIT: Small businesses may get a credit as high as 30% of the cost of switching to solar power, which can greatly reduce or even eliminate electricity bills.
– ENERGY EFFICIENCY CREDITS: Owners of buildings that house small businesses may claim a credit of up to $5 per square foot for efficiency improvements that reduce energy usage and utility bills.
– CLEAN COMMERCIAL VEHICLE CREDIT: This credit may be as high as 30% of the cost to acquire commercial trucks and vans classified as clean vehicles. Clean vehicles include plug-in electric and hybrid vehicles, as well as vehicles powered by fuel cells.
These credits are nonrefundable, so you cannot claim a credit amount greater than the tax your business owes. Nevertheless, they could reduce your enterprise’s tax bill. Our business tax professionals at RTW Xxact Enterprises can help you determine whether your business qualifies for these credits, and if so, help you develop a plan to maximize your tax savings.