As eco-consumer rates rise, companies purchase and install green technology, shrinking their carbon footprints. Meeting customers’ sustainability demands is expensive, requiring steep upfront costs. The U.S. government evaluated the financial challenges associated with eco-conscious transitions, creating supportive tax incentives.  

Government officials developed specific rebates for efficiency-enhancing architectural features and technology. The funding supports the national carbon-neutrality goal, minimizing greenhouse gas emissions. Over time, businesses can save money and the planet, adopting green business features.  

The BBB and Tax Credit Extensions

When President Biden took office, he established the Build Back Better plan. His administration distributed $2 trillion throughout the sustainability sector, supporting emission-reduction efforts and green technological advancements. Government officials allocated a portion of the funding to extend some energy efficiency tax incentives.

Many tax credits were going to expire in 2020 under the Trump administration. President Biden developed a national carbon-neutrality goal, finding and supporting emission-reduction methods. He also plans on creating a clean electric grid solely reliant on renewable energy.

Producing enough emission-free power to support the grid requires mass installation projects. Individuals must additionally improve the energy efficiency of buildings to increase the grid’s stability, minimizing stress. When business owners support the national goal, improving efficiency rates and installing renewable energy systems, they can increase their financial savings and shrink their carbon footprints.  

Whole Building Rebate

Before purchasing and installing green technology in your building or restructuring it for efficiency, individuals must explore the available rebates potentially supporting the alterations. The government provides a basic energy efficiency rebate based on the electricity consumption of an entire building. If business owners reduce their energy use by 50% or more, they are eligible for a federal tax credit.

Individuals can receive $0.60 back on each square foot of an energy-efficient building. Company owners can purchase and install smart appliances to minimize their electricity reliance. Smart thermostats are a popular efficiency-enhancing technology for commercial buildings.

The devices connect to heating, ventilation and air conditioning (HVAC) systems. They use Wi-Fi linking to access weather predictions, adjusting indoor temperatures for efficiency. Additionally, the technology uses motion detection sensors to minimize unnecessary energy pulling in vacant buildings.

Business owners can also install Energy-Star-rated appliances to increase their whole buildings’ rebates. Certified, high-efficiency systems like air conditioners and water heaters increase a company’s eligibility for $300 tax credits. Individuals can additionally enhance their buildings’ sustainability levels, accessing other rebates by installing solar.

Solar Power Tax Incentive

Photovoltaic (PV) solar panels significantly decrease a company’s reliance on the conventional energy grid. The renewable energy system releases zero greenhouse gas emissions while producing electricity, unlike fossil fuels. The government compensates employers for purchasing and installing solar, providing them with the investment tax credit (ITC).

Businesses can receive 26% back on their initial panel purchases and installation costs. All companies are eligible for the ITC if they installed solar power between 2006 and 2023. Individuals must also own their PV systems to access the credit, improving the affordability of sustainable energy.

Building Improvement Credits

The government also provides extra rebates for structural and material improvements, minimizing energy loss. Business owners can access the tax credits by improving their buildings’ insulation. Older structures may require installation updates because of inefficient and outdated material uses.

Blow-in insulation, closed-cell spray foam, floor insulation and more improve a building’s efficiency. Renovating a structure’s roof or replacing an outdated version can increase a business owner’s eligibility for energy efficiency rebates. A significant quantity of conditioned, indoor air escapes buildings through windows.

Company owners can increase the overall efficiency of a building by sealing its window’s borders, cracks, door frame and more. Individuals may additionally increase their eligibility for rebates by installing electric vehicle (EV) charging ports. EVs are becoming more popular because they produce zero tailpipe emissions, shrinking the driver’s carbon footprint.

After employers install charging ports on-site, they can access an additional tax credit to support the emission-reduction efforts. Different states offer varying rebates for green technologies and EV-compatible systems.

Applying for Energy Efficiency Rebates

After evaluating the benefits of improving a business’s energy efficiency, employers may begin purchasing green technology and conducting structural enhancements. You can make the most of tax credits by exploring the available state incentives in your region. The IRS website and local tax professionals can inform business owners of their eligibility for incentives, increasing their financial savings and sustainability.