Businesses to Benefit From Energy Tax Breaks
Q: I’m hearing a lot about energy-related tax incentives for homeowners in the stimulus package. Can you tell me what’s available for small businesses?
A: Most of what the economic-stimulus plan offers small businesses in terms of energy incentives will eventually trickle down from state and local governments.
The package allots $3.1 billion to state governments and an additional $3.2 billion for local governments to spend on energy efficiency, renewable energy and conservation initiatives, says Lowell Ungar, policy director for the Alliance to Save Energy, a Washington coalition that promotes energy efficiency.
Mr. Ungar says it’s unclear right now how the state and local governments will spend that money, but he expects it will be used, in part, to sweeten government- and utility-sponsored programs that already offer tax breaks to businesses that make energy upgrades and install renewable energy. He says it will also expand revolving-loan programs that offer low-cost loans to businesses and homeowners to help pay for energy upgrades and renewable-energy projects.
The stimulus money targeted to help homeowners and federal and state governments upgrade homes and buildings will also indirectly benefit small businesses that are involved in energy audits and upgrades, because more consumers will be buying their products and services.
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