Alternative Energy Tax Credits

Increased awareness about the conservation of resources and global climate change is contributing to an increased desire for sustainable business practices across the United States. Some states are enacting their own laws, sometimes offering more tax incentives than the existing federal tax benefits for business sustainability activities.

Not only are there state and local tax (SALT) incentives, but also state and local requirements. According to the U.S. Green Building Council, 18 states and 73 cities and counties require that public buildings or publicly funded buildings meet some level of environmentally conscious certification. State Tax Group, LLC can help you sort through SALT incentives, credits, and requirements to determine the best locations and building strategies, even in multiple states.

Some of the energy tax breaks and tax incentives that states and cities offer are related to:

  • Alternative energy use, renewable energy, or energy efficiency;
  • Alternative energy production;
  • The purchase of equipment that is used to gather, process, or manufacture products out of post-consumer waste;
  • The acquisition, construction, or development of water- or air-pollution control facilities;
  • Environmental remediation activities;
  • Brownfield credits; and
  • Defraying startup costs of a new location or of a sustainability-related expansion or upgrade.

Each state provides different incentives, such as:

  • Income tax credits;
  • Property tax reductions or abatements; and
  • Sales tax exemptions.

Effective sustainability accounting and reporting involves weighing tax incentives, energy savings, up-front costs, and a host of other factors to determine the best sustainability strategy. State Tax Group can perform a comprehensive review of the potentially applicable sustainability incentives and help your company identify tax benefits, even for completed projects, to help achieve increased business benefits.


State Tax Group, LLC must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.