Ultimate Book of Business Forms

CHAPTER 16

Forms for Tax Rebates

SEVERAL STATE AND FEDERAL FINANCIAL reprieves are available to small business owners, providing rebates and tax breaks for those companies that qualify.

There are a variety of federal programs available that provide rebates and other savings. The American Recovery and Reinvestment Act of 2009 has made the IRS responsible for implementing several tax changes that provide tax incentives for businesses designed to increase green energy investment and spur job growth. While some of these are forms that most businesses can use, some are industry-specific and dependent on the purpose of your business.

Cash or rebates are available to businesses that qualify for renewable energy grants provided by the U.S. Department of Treasury. The specific form you’ll see in this chapter is Application for Section 1603—Payments for Specified Renewable Energy Property in Lieu of Tax Credits. In addition, corporations can file Form 3468 Business Energy Investment Tax Credits for investment credits, including the rehabilitation credit, the energy credit, and the reforestation credit. For example, if your company used solar energy, you may be eligible for commercial solar incentives.

Corporations can also file for the Energy-Efficient Commercial Buildings Tax Deduction on form 1120 (on the Web). Include the amount of the deduction in the “Other deductions” line of the tax return.

Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that aims to protect the environment and save people money through its promotion of energy-efficient products and practices. Energy Star programs assist businesses as well as individuals. For example, your company may be eligible for tax credits if it uses alternative fuel vehicles. If alternative fuel vehicles are part of your business model, complete Form 8910 Alternative Motor Vehicle Credit when you file your taxes.

Individual states will have their own applicable tax credits as well. As an example, we include the Alternative Energy Product Manufacturers Tax Credit form offered in the state of New Mexico. In addition, the Oregon Business Energy Tax Credit Application offered in the state of Oregon is provided as an alternative example. Several states offer a similar tax credits that small business owners can take advantage of using or manufacturing alternative energy products and components.