Many businesses rely on their transportation fleet as a means of getting their products out to their local customers. They also use vehicles to bring raw materials into their businesses in order to produce their products. Now it is possible to earn fleet credits on your vehicles if they meet certain requirements. These vehicle tax incentives, depending on the particular qualifications, may come to you through the state of California or the federal government. Your certified public accountant will be able to clarify which
truck tax credits and other incentives are appropriate for your California-based company.
Many people have made the switch from gas-guzzling large vehicles to fuel-efficient hybrids. Many cities use hybrid buses as a way to save on fuel and reduce harmful emissions and earn emission credits at the same time. Along this line, there is a
hybrid tax incentive available for California businesses and their vehicles. Your company might qualify for a hybrid tax incentive of up to four thousand dollars for hybrid passenger vehicles and fuel cell motor vehicles that qualify. Proposals are also being discussed at the state level to grant a hybrid tax incentive to California companies that use clean-burning vehicles which is a waiver on sales tax when the vehicle is purchased by qualified companies.
On the Federal level, there are alternative fuel credits available.
alternative fuel credits range from $2,500 to $32,000 depending on the weight of the vehicle.
If you are using a car or truck that runs on Lean Burn Technology, your company might qualify for other Federal emission credits. These can net your company a savings of $400 to $2,400 per vehicle that uses the technology.
There are also business car and truck tax credits in the new Federal stimulus package that was recently passed. In the first year of depreciation that you can claim on your business vehicle, you can deduct over $10,000 for cars and over $11,000 for light trucks and vans.
Another way to earn emission credits and other types of transportation tax incentives is to lease your business vehicle rather than purchase it. If you buy a vehicle you can claim depreciation deductions over a number of years, but if you lease your claim is based on the business use percentage of your lease payment in the year the payments are made.
If you wish to learn more about emission credits and how they can help your California-based business save money, you will want to contact a CPA that specializes in corporate tax planning. Your CPA can evaluate your business and determine which vehicle tax incentives are appropriate for your company.
