Getting Tax Advice And Learning The Facts Can Benefit A Business
Tax season is ever-advancing, and while some look forward to their refund check, others tend to panic. However, there have been recent modifications of the tax legislation that may prove to be rather advantageous to some companies. With a little tax advice, business owners will truly see just how their corporations’ taxes will benefit by implementing a few renewable energy projects.
Generally, the gist is that the Recovery Act is being put into motion. This amends several stipulations of the U.S. Tax Code in order to expand or provide new renewable energy incentives. Businesses, utilities, and governments which opt to utilize renewable energy will be included in the incentives. Tax credits will be given for the production and use of wind, refined coal, solar, biomass, and geothermal energy as well as combined heat and power systems.
Bonds for clean renewable energy, as a result of this act, will now be allowed to be put toward renewable energy projects. Such an advancement is beneficial because they are theoretically issued with 0% interest. The borrower of the finances will only be responsible for the principal value and the bondholder will, in turn, receive tax credit in lieu of the standard interest on the bond. The bonds will be seen as taxable income.
Flexibility in Investment Tax Credit and Production Tax Credit will be greater as well. Taxpayers will have the ability to elect certain eligible facilities to be considered as energy property. Furthermore, the Recovery Act has repealed the proposed limit of $4,000 on the ITC for small wind energy property as well. The repeal will take effect upon any piece of property placed and put into action after the last day of the year 2008.
Finally, the Department of Treasury will now be able to award tax credits for qualified investments in advanced energy projects. These must simply be completed within four years of the acceptance of the credit. Eligible facilities include plug-in electric vehicles and vehicle components, property to capture and sequester carbon dioxide, and technologies that create energy from renewable resources.
Among other reasons, this is why businesses should consider getting tax advice to gain information to apply when preparing for taxes. A company that uses any sort of renewable resource could be eligible for extremely beneficial tax breaks and potentially for bonds that could be put toward new projects. Without getting advice prior to starting a project or filing taxes, a business could potentially waste lots of money.
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December 27 2010 02:34 am | Uncategorized