Earth Day Investing in Sustainability

Earth Day 2022 is a fitting time to consider sustainability in business.  There are resources and programs already available and you can benefit from them while going green.  Your clients would love it and green living equals tax savings.  In a recent Deloitte publication, a few reminders came out that can add to those savings we regularly discuss.

Earth Day investing in sustainability

Electronics Donations in Charitable Contributions

Stuck with that old phone system?  Donate it. Another business strapped for cash might benefit from below-retail pricing on electronics and you get a tax deduction. Meanwhile, an item is being reused, which is even better than recycled. When you donate electronics to a qualified nonprofit you can write off the donation amount equivalent to fair market value. Donated Electronics could include game consoles, old computers, cell phones or even phone systems.  

There are no forms to fill out for donations valued at less than $500.   However, once your total contribution deduction exceeds $500 you do need to submit form 8283.  This form lists the types of donations you made to which organizations for your tax return.  Make sure you get a receipt when you donate, so you have it for your files and give yourself an earth day pat on the back.  If you need bigger sustainability incentives, think illumination and power at your business site.

Convert to Renewable Energy and Get Saving Incentives

This savings is a hot topic on Earth Day, since the 2022 theme is “investing in our planet”. Businesses that install renewable energy systems can save tax money of up to 26% of the installation cost.  Once you install the system, costs are minimal, saving businesses thousands of dollars a month in electric costs.  The US Department of Energy notes total commercial energy expenditures were around $172 billion in 2012. 

Big retailers like Target and Walmart have already begun doing this, and several of their stores sport rooftop solar panel arrays to quietly power their business. Since beginning, Walmart has enjoyed cost savings on electricity of 5-30 percent per store.  Over the life of the renewable energy system those savings will continue to rise. Now combine it with the tax credit and you should be seeing green.

Get Help On Worker’s Wages

Americore Blue Apple programs are structured to offer a variety of solutions to small and medium business owners.  One program helps make your wage offer look better to new hires.  Is your business still struggling to find qualified new hires following the great resignation?  Federal and states are offering wage subsidies to help incentivize interning college students find work in environment and tech friendly fields.  You bring on fresh creative workers. The federal government is so relieved to get people back to work they offer a wage rebate program. 

Research for Sustainability

The R&D program is still available, and if you haven’t checked into it yet, you could be missing out on money meant for you.  This program is far more flexible than you might think.  Qualifiers are broad and the savings are large. To figure out if it is worth investigating, ask yourself these four questions.

  1. Have you tried to eliminate uncertainty about development or improvement of your product or process?  (We are talking about at a core level, not cosmetic changes.)
  2. Can you prove your process of experimentation with simulations, modeling or testing?
  3. Are your endeavors science or engineering based?
  4. Is there a measurable improvement in quality, reliability or performance?

If your company uses an automated manufacturing process, tool design, patents, environmental testing or is developing any of the above, talk to your Americore representative about whether this program is for you. 

Financial incentives is moving renewable energy projects rapidly in residential, commercial and utility sectors. As the world moves toward a low emission sustainable model, opportunities for sustainability savings multiply.  On this Earth Day 2022, Americore is posing the question, are you ready to invest in our planet and save money doing it?