The American Jobs Creation Act of 2004 and the Energy Tax Incentives Act of 2005 enacted or expanded several tax incentives to provide savings for alternative energy and green design business activities. Significant tax savings can be realized if any of the following apply to your business activities.
Alternative Fuels Producers, Consumers, Retailers:
- Biodiesel manufacturers and blenders;
- Agri-biodiesel manufacturers and blenders;
- Renewable biodiesel manufacturers and blenders; and
- Low-sulfur diesel producers.
Alcohol credits are available for:
- Ethanol;
- Methanol; and
- Alcohol mixtures used as fuel.
Alternative fuel credits for:
- Propane;
- Kerosene;
- Liquefied hydrogen;
- Liquefied petroleum gas (LPG);
- Liquefied natural gas (LNG); and
- Compressed natural gas (CNG).
Fueling station credits:
- Qualified alternative fueling station property is eligible for federal tax credits.
Alternative Energy sources:
- Implementation of active or passive solar technologies;
- Fuel cell systems;
- Microturbine systems;
- Wind generated electricity;
- Geothermal generated electricity;
- Organic or solid municipal waste generated electricity; and
- Hydropower generated electricity.
Energy efficient design:
- Energy efficient commercial building;
- Energy efficient home construction; and
- Energy Star appliance manufacturing.
- Clothes washers;
- Dish washers; and
- Refrigerators.
State Incentives
Many states offer tax incentives similar to those listed above.
Why now?
Many of the Federal and state energy tax incentives can be carried forward for future tax years if they are unused in the current year. However, these incentives are not permanent.
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