subject: Save On Taxes While Saving The Planet – With Emission Credits [print this page] Author: Wayne Hemrick Author: Wayne Hemrick
If your business is like most, you have at least one vehicle used in conjunction with its operations which is why you should look into how you can save money with California emission credits. These vehicle tax incentives are designed to encourage fuel conversation and reduce air pollution. A professional CPA can most likely tell you if your current vehicle(s) are eligible for emission credits and if not, which vehicle(s) your business should be purchasing in order to qualify.
For example, lawmakers in Sacramento have come up with a hybrid tax incentive to encourage businesses to make the switch from large, low-mileage behemoths to highly efficient gas-electric autos and trucks. Although at this writing, the hybrid tax incentive has yet to be signed into law, these particular vehicle tax incentives could ultimately save your company as much as $4000 when it acquires such a vehicle for business use. You may find it well worth your while to invest in vehicles that qualify for the hybrid tax incentive, such as the Prius.
When it comes to federal business taxes, your California business may also qualify for alternative fuel credits. Depending on the weight of the vehicle and the type of alternative fuel it uses, alternative fuel credits can mean up to $32,000 in savings in corporate taxes.
In addition, the recent federal stimulus package has included additional vehicle tax incentives for business. The amount of depreciation that can be claimed during the first year of corporate ownership of a vehicle has has been increased to $10,000 for passenger vehicles and $11,000 on light trucks and delivery vans.
More vehicle tax incentives come when your company chooses to lease vehicles rather than purchasing outright. The difference here is that your tax deduction is based on the percentage of business use of the vehicle in years during which lease payments are made, as opposed to simple depreciation.
Is your company eligible for emission credits or the benefits of a hybrid tax incentive? This is where you'll definitely want the advice and counsel of a qualified, expert CPA in the LA area. This individual is trained in the fine points of the California tax code and is required by law to stay current on the changes that frequently come from the state house in Sacramento. A good CPA is a worthwhile investment, as he can help you determine which emission credits your company qualifies for.About the Author:
