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Are there any tax incentives for my business if it goes carbon neutral?

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There are a broad range of resources and tax credits to encourage companies to reduce their carbon footprint. These include state and federal tax incentives to install energy efficient measures including lighting, motors and pumps as well as various renewable energy systems. Some of these incentives take the form of tax credits, like those for renewable energy systems, deductions, like the energy efficient building codes that incentivise companies or builders to improve the efficiency of their facilities, as well as grants, usually from states or utilities to implement various measures. Once installed many of these attributes may be commoditized and sold as credits on various exchanges like the Chicago Climate exchange.

Of course the single biggest incentive is the financial savings accrued through the implimentation of these various measures. While it is true that the more carbon you seek to cut, the more it will cost, every carbon reducing measure has a sound financial payback. Just keep in mind some technologies take longer than others to pay for themselves, sometimes a lot longer.

It's important to keep in mind that not only do these measures and technologies represent significant long term savings but they are also a fundamental hedge against price risk in the commodity markets. While natural gas may be cheap now it wasn't that long ago we were paying $14-15. Oil may be half what it was but it's still double from ten years ago. And with the likelihood of cap and trade, the less exposure to carbon emissions a company has the more money it will save.

So while there are no direct tax incentives for going carbon neutral, the breadth of available resources constitute a defacto tax incentive accruing to substantial savings the closer you come to being carbon neutral.

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There are many tax incentives out there for companies. The government wants companies to be more environmentally friendly and offering tax incentives is one way of doing that. Another thing that they can do is issue penalties for companies not complying to government eco policies.

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At this stage there are no tax incentives for a business if it is operating on a carbon neutral basis, but we hope this may change in the future as the government continues to develop its position on carbon emissions.

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At this stage there are no tax incentives, but we hope this may change in the future as the government continues to develop its position on carbon emissions.

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Depending on where you live you can receive tax credits for your buisiness my meeting standards for LEED (Leadership in Energy and Environmental Design) Accreditation. There probably are tax incentives for making you building "greener" by implementing abatement methods that reduce use of CO2 emitting fuels; encouraging employees and patrons to use mass transit, walk or bike; using construction techniques that reduce waste and minimize pollution.

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