2012 Energy Efficiency Tax Incentives For Businesses

Editor’s Note: EarthTechling is proud to welcome Alliance to Save Energy as a content partner via a reposting of this article. Author credit goes to Tom Simchak and Miriam Berg.

Certain business tax incentives can help organizations reduce the cost of energy efficiency. Although the deadline to claim 2011 energy-saving commercial tax incentives was last week, you may already be thinking about making your company more energy efficient in 2012.  Several energy efficiency tax incentives for companies have expired, but two are available for 2012: one for buildings and one for electric vehicles.

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Energy-Efficient Commercial Buildings Deduction

If you make your building more energy efficient, you can claim the energy-efficient commercial buildings deduction. This tax deduction is available for businesses that improve the performance of:

  • Lighting
  • Building envelope
  • Heating, ventilation and air conditioning (HVAC) systems

The deduction is worth $1.80 per square foot of the building for retrofits that address all three of the above areas, and $0.60 per square foot for retrofits that address one of these areas. To qualify for the full $1.80 deduction, the retrofit must bring the building to performance levels at least 50% better than certain standards set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) in the three categories.

Resources for the Energy-Efficient Commercial Buildings Deduction:

For more information on the energy-efficient commercial buildings deduction, check out:

Electric Vehicles & Refueling Property Tax Credit

Several electric cars and other electric vehicles are eligible for a tax credit. If you or your company bought a battery-powered, plug-in car that can drive on the highway anytime after 2009, you can get a tax credit of up to $7,500.

Resources for the Electric Vehicle Tax Credit

For more information on the electric vehicles and refueling property tax credit, check out:

We at the Alliance to Save Energy are experts on energy efficiency, not taxes and thus do not provide tax advice.  For further details, businesses should consult a tax professional and the Internal Revenue Service.

The Alliance to Save Energy is a nonprofit organization that promotes energy efficiency worldwide through research, education and advocacy. We encourage business, government, environmental and consumer leaders to use energy efficiency as a means to achieve a healthier economy, a cleaner environment and greater energy security.

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