CPA: Kansas City Green Tax Credits

The main difference between a deduction and a tax credit is that a credit lowers an individual’s or a business’s bottom line tax liability. Recently, the IRS has made concessions for private consumers and companies to claim tax credits for the purchase of energy saving items and equipment. The stipulations on how these tax credits are given vary from state to state and an individual or business that has made energy efficient initiatives should consult with their local CPA. Kansas City businesses should check with their personal accountant or tax professional to determine their credit availability.

There are numerous stipulations for various energy efficient equipment purchases and their credit on tax returns. A CPA in Kansas City can examine local businesses to determine what qualifications, if any, that they meet for this tax credit.

One example is the purchase or lease of a hybrid gas/electric powered car or truck for business use. Depending upon the vehicle’s weight, its fuel economy, and the state guidelines, the business could be eligible for a tax credit ranging from $250 to $3400. Vehicles that use alternative fuel or fuel cell powered vehicles may also qualify for a credit. Typically, each vehicle that is purchased may be eligible for the full credit.

CPA in Kansas City: Building Efficiency

Making building improvements can also qualify a business for an energy efficiency tax credit. These improvements not only ease a company’s tax burden, it can also save on monthly energy bills. Tax credit qualification is very specific on which improvements are eligible. Some projects that may make the cut include the installation of energy efficient doors, roofs, insulation, and windows. Also, improving the building’s HVAC system can be a qualifying investment. A CPA in Kansas City will be knowledgeable on the federal stipulations for the tax credits and will also be an expert on state regulations for Missouri and Kansas.

With new environmentally friendly options emerging constantly, it is important to know about these money saving options and the tax credits that accompany them. As the rules and parameters change, you will need to secure a trusted CPA. Kansas City businesses making these improvements should not miss out on the potential tax benefits.

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