Since businesses in the USA are one of the largest consumers of electricity, the US government is now providing incentives to them to go green. Going green means making use of renewable resources such as hydroelectricity, wind and solar power to generate electricity which can then be used to power appliances. Using green resources not only save costs considerably but they save natural resources from depleting rapidly. More importantly, the pollution in the environment will decrease considerable because of lesser burning of fossil fuels.
Numerous states in the US offer tax incentives to businesses in order to promote the use of renewable energy. Some of the prominent states where the government provides tax benefits include New York, Oregon, Minnesota, Arizona, Maryland, Idaho and New Jersey. In the past, the private business sector was not much in preference for using renewable energy. The reasons cited for the same were the initial investment in the installation of equipment and their maintenance. They failed to understand that these costs will be covered in the long run.
Hence the government took the imitative about spreading the awareness of the financial and environmental benefits of using renewable energy. Today tax incentives such as tax deduction are provided to the businesses to use renewable energy. The government also provides help and consultation in the initial implementations of the system.
The tax incentives provided by the government differ from one state to another. Benefits such as discounts and reduced sales tax are also provided in buying the energy efficient products. Since the upfront costs of installing the energy efficient systems are higher, incentives are provided in the form of deductions, allowances and tax credits. The two most common tax credits given to businesses are efficient appliance credit and green building credit.
When the government offers tax credits, the market share of the business increases manifold. This opens the market for other parties such as sales people, consumers and installers who derive benefits from the finished product. The tax incentives are normally applicable for 5 to 10 years after which they can be renewed. The businesses normally get tax credits between 10% and 35% of the price of the energy efficient equipment.
Thanks to the above incentives provided by the government, more and more businesses are understanding the importance of growing green and depending less on limited sources such as coal and gas for their energy needs.