The tax breaks in last year’s Energy Bill weren’t just for consumers and big oil companies. A surprising variety of other businesses can benefit too.
Contractors who build energy-efficient homes can earn a tax credit of $1,000 to $2,000 per unit. To qualify, the homes must have annual heating and cooling costs 30% to 50% less than a comparable house.
Manufactured housing (mobile home) makers are also eligible for this same credit.
Appliance manufacturers who make dishwashers, clothes washers, or refrigerators can earn a tax credit if their appliances meet certain energy efficiency standards.
Owners of commercial property who make energy-saving improvements may be able to take an immediate tax deduction for the expenses. Improvements to heating, cooling, hot water, and lighting systems, as well as to the building envelope, are all eligible. To qualify, you must reduce the combined energy costs of these systems by 50% relative to a reference building.
Other businesses qualifying for tax breaks include small-scale producers of alternative fuels such as agri-biodiesel and ethanol.
Most of these tax breaks are available in 2006 and 2007.
These are just a few of the new tax breaks that took effect this year. Please call our office if you’d like further details.
Home
What's New
Professional Advice
