Energy Tax Credits
Federal and state governments offer energy tax credits to incentivize investments in renewable energy, sustainability initiatives, and energy efficiency. Under the Inflation Reduction Act, businesses can now transfer renewable energy tax credits, providing flexibility and new financial opportunities.
CBIZ helps businesses identify, optimize, and monetize energy tax credits, ensuring you maximize tax savings while remaining compliant with IRS guidelines. Whether investing in solar, wind, or electric vehicle (EV) infrastructure, our team helps you navigate complex eligibility requirements and implement the best strategy for your organization.
Supporting Your Tax Strategy
Maximize savings with specialized guidance on energy tax credits and incentives.
Offset up to 40% of project costs through the federal Investment Tax Credit.
Under the Inflation Reduction Act, developers and C corporations can purchase renewable energy tax credits to optimize tax savings.
Many states offer additional credits and deductions for renewable energy projects. CBIZ ensures you maximize both federal and state benefits.
Investment Tax Credits (ITCs)
Offset up to 40% of project costs through the federal Investment Tax Credit.
CBIZ helps ensure compliance with prevailing wage and apprenticeship rules to maximize your tax savings.
The ITC is available for solar, wind, and energy storage projects. With bonus depreciation and five-year MACRS depreciation, businesses can significantly reduce upfront costs.
The base percentage for projects producing under 1 MW of production is 30%. Additional 10% bonuses are available for qualifying projects in Energy Communities, projects using Domestic Content, and projects located in Low Income Areas. For projects that produce over 1 MW, developers must meet specific wage and apprenticeship requirements.
Transferable Tax Credits
Under the Inflation Reduction Act, developers and C corporations can purchase renewable energy tax credits to optimize tax savings.
Transferability allows businesses to monetize credits at 85-95 cents on the dollar, providing an efficient alternative to direct investment in renewable energy.
Individuals can purchase Investment Tax Credits but they will be subject to the Passive Activity Rules.
State & Local Incentives
Many states offer additional credits and deductions for renewable energy projects. CBIZ ensures you maximize both federal and state benefits.
From property tax abatements to green bonds, we align incentives with your strategic goals.
Who Benefits From Energy Tax Credits?
CBIZ helps businesses leverage tax incentives to achieve financial and sustainability goals.
Comprehensive Energy Tax Solutions
CBIZ specializes in energy tax credit strategies that reduce liabilities and enhance cash flow. Our solutions include:
- Investment Tax Credits (ITCs)
- Production Tax Credits (PTCs)
- Transferable Tax Credits
- State & Local Incentives
- Green Building & EV Charging Credits
