The environment is doing ever too poorly and hence the introduction of various incentives to help in combating the menace. To help reduce the greenhouse gases in the atmosphere, various methods have been used to monitor the production of chemical products, construction and other services that might lead to the destruction of the environment.
However, the methods cannot work effectively if the businesses do not join hands to see to it that the desired goal is achieved. To help in attaining this, tax Green Energy Business Incentives have been put in place to motivate people into turning to the green energy. It is important to understand the tax incentives in order to gain a better hand.
Goals of the Tax Incentives
The goal of the tax incentives is to encourage business investment that will lead in the production of the green energy. Through the production of the green energy, the carbon dioxide emissions will be reduced and thereby improving the environmental conditions. The strategy has achieved great heights in the reduction of the emissions brought basically by the fossil fuels.
When using the program, the business area able to enjoy two major benefits which are; 10% refundable income tax credit and the 75% reduction on the personal and real property taxes. The incentives are provided to companies dealing with the wind, geothermal, solar and other renewable energy sources.
Requirements for the incentives
However, to get the Green Energy Business Incentives, the company has to meet certain requirements. The company should be engaged in the production of products used in the production of renewable energy; the company is expanding its renewable energy production; spends quality investment in the renewable energy production. The requirements however range from one state to the other. The company planning on getting the incentives should therefore check with the local authorities to establish their eligibility.
The Green Energy Business Incentives are provided in a number of circumstances. To start with, if the company is planning on purchasing property which is worth a certain amount of money, the government will step in to reduce the overall cost of the property.
A tax saving of up to 15 years is also given on the property. The income tax credits are also provided if the business is planning on starting the production of the renewable energy. This could be reduced tax in the purchase of equipment and relieve from paying tax for a number of years. The incentives vary and it is up to the company planning to start the energy production to check with the relevant authorities.
Completing the Application
To complete the Green Energy Business Incentives application, the company is required to fill certain forms and put in place certain measures. To start with, it is advised to request the good standing letter from the Revenue. This is done by submitting the Tax Clearance Application to the revenue.
The 2011 Initial Application has to be completed and submitted to the Commerce. The Commerce assigns a priority placement for the receipt of the tax incentives. The company is then notified of the pre-approval or denial within a period of 30 days. It is important that all the forms be filled correctly and the relevant documents be attached.