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Green businesses may get tax credits

| Jul 21, 2021 | Tax Law

Business owners in Long Island and other parts of New York may want to learn more about the current credits they can receive if you are a green business. In addition to this, there are tax exemptions for sales related to green equipment.

Per the New York State Department of Taxation and Finance, your business may receive credit related to alternative fuels, electric vehicles, clean heating and more.

Alternative fuels and electric vehicles recharging

For the years beginning in 2013, there is a credit for the following:

  • Credit for investments in new alternative fuels vehicle refueling property
  • Electric vehicle recharging property

The business must have a location in New York State. The credit is equal to the lesser of $5,000 or 50 percent of the cost of the property minus any dollars from grants.

Biofuel production

You will receive consideration for a tax credit if you produced biofuel between Jan. 1, 2006 and Jan. 1, 2020. The credit is 15 cents per gallon of biofuel produced.

Clean heating

There is a credit if you purchased bioheating fuel for use for space heating or hot water production for residential purposes. It must have been on or after Jan. 1, 2017 and must contain at least 6 percent biodiesel per gallon of bioheating fuel.

Conservative easement

You can get this credit if you or your business is the owner of land held by a conservation agency, whether private or public. It relates to businesses and individual taxpayers, but there are a few restrictions. The credit is 25% of the school district, county, and town real property taxes paid. It has a limit of $5,000 per year.