How Switching to Alternative Fuel Vehicles and Buses Can Boost Your Tax Benefits This Year
With the mounting pressure for businesses to go green, alternative fuel vehicles and buses, such as the ones here at Creative Bus Sales, provide companies with an opportunity to reduce their consumption of nonrenewable resources.
Making the switch not only fulfills consumers desire to go green, but it also provides business with potential tax savings, refunds, and deductions. Here's how to maximize those tax benefits this year!
Understanding How Going Green Saves You Green
Over the past several years the government has developed several incentives, discounts, and other tax benefits designed to entice businesses into or instead of into “to explore” greener operations. One of the quickest ways to do this is by switching to alternative fuel vehicles and 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. Common benefits include:
- New Purchase Tax Deduction
- IRS Fuel Refund
- State Level Incentives
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. These criteria include, but are not limited to:
- 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 vehicles and 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 vehicles and buses, please contact the team at Creative Bus Sales today!