Boost Your Tax Benefits
The new year is always an ideal opportunity to make changes in our lives and set up new goals, so why not switch to alternative fuel buses? Going green presents companies with an occasion to diminish their consumption of non-renewable resources.
Making the switch provides business with potential tax savings, refunds, and deductions. Here’s how to maximize those tax benefits this year!
Benefits of Going Green
Several incentives, discounts, and other tax benefits designed to entice businesses to “explore” greener operations have been developed over the past several years by the government. One of the quickest ways to do this is by switching to alternative fuel buses. Making the switch not only reduces your company’s carbon footprint, but it can also reduce your monthly expenses in fuel and maintenance costs, as well as increase your tax benefits. Some benefits include:
- New Purchase Tax Deduction
- Incentives on the State Level
- Fuel Refund from the IRS
New Purchase Deductions
Depending on your business and local laws, you may be eligible to earn a nice tax deduction when you upgrade your current fleet with alternative fuel vehicles and buses. This deduction has the potential to reduce your taxable income and lower your tax bracket, saving you even more.
IRS Alternative Fuel Credit
The IRS fuel refund allows eligible businesses to request repayment of fuel taxes if they meet certain criteria:
- Onsite Fueling Facilities
- Registered as Alternative Fuels with the IRS
- Credit approved uses or industries, such as school or city buses
Businesses are encouraged to speak with their tax professional to ensure they meet the requirements and take advantage of these valuable tax savings.
State-Level Incentives
While federal tax breaks often provide the highest amount of savings, state-level incentives granted to businesses that switch to alternative fuel buses can also offer tax benefits of small businesses. Each state offers their own alternative fuel incentives, but some common types include:
- Alternative fuel vehicle purchase
- Alternative fuel rebates
- Electric vehicle credits
- School bus retrofit grants and tax breaks
By claiming every tax benefit, your business is eligible for you can potentially save thousands off your tax liability this year. For more information on the tax benefits of switching to alternative fuel buses, or if you need a propane or CNG bus in Colorado, please contact the Colorado West Equipment today!