Tax Incentives for Going Green: Maximize Savings on Sustainability Upgrades

Businesses looking to lower energy costs and reduce their environmental footprint have a powerful ally—federal tax incentives. Investing in energy-efficient upgrades or on-site generation like solar doesn’t just improve your facility’s performance—it can also lead to substantial financial savings through stackable tax benefits.

Key Tax Incentives for Sustainable Businesses

If you’re planning a green investment, here are three major programs that can help offset project costs and improve your ROI:

  • Investment Tax Credit (ITC)
    Businesses that install solar energy systems may qualify for a 30% federal tax credit, dramatically reducing project costs. In some cases, the ITC may also apply to related expenses like roof replacements.

  • 179D Commercial Buildings Energy Efficiency Deduction
    This deduction rewards energy-saving improvements to lighting, HVAC systems, and building envelopes. Qualifying upgrades can earn up to $5 per square foot in tax savings with available bonus depreciation.

  • Bonus Depreciation & MACRS
    The Modified Accelerated Cost Recovery System (MACRS) allows for faster depreciation of qualifying energy equipment, boosting short-term cash flow. Bonus depreciation may offer even greater benefits in the first year.

Unlock the Full Value of Energy Incentives

While these incentives are valuable, navigating eligibility and compliance can be complex. That’s where Viridi comes in. Our team can help your business by assessing your project, identifying the full range of available tax incentives, and guiding you through the process to maximize your savings.

Ready to explore what tax incentives your business qualifies for?
Contact Viridi today and start planning your path to a more sustainable—and profitable—future.