Hey there, energy-savvy biz owners! We’ve got some electrifying news that’s going to light up your savings. The Small Business Energy Incentive is officially law, and it’s here to support your energy efficiency goals while powering down your tax bills. Let’s plug into the details!
What’s the Deal?
If your biz has an aggregated turnover of <$50 million and you're thinking about upgrading or purchasing new assets to boost energy efficiency, this incentive is tailor-made for you.
Here’s how it works:
Bonus Deduction: You can claim a bonus deduction equal to 20% of the cost of eligible assets or improvements that support more efficient energy use.
Eligibility Period: The assets must be first used or installed and ready for use for any purpose, and specifically for a taxable purpose, between July 1, 2023, and June 30, 2024. Any improvement costs must also be incurred during this period to qualify.
Max Out: Up to $100,000 of total expenditure is eligible, with the max bonus deduction capping at $20,000 per biz. That’s a bright idea for your bottom line!
So What Can’t You Claim For?
Not all expenses will qualify, so here’s what doesn’t make the cut:
Assets that use fossil fuels (yep, fair enough)
Assets primarily for generating electricity (like solar panels .... booooooo 😭)
Capital works
Motor vehicles and related expenses (another boooooo 😭)
Software development pools (oh come on now 😭)
Financing costs
Double Dipping (the Right Way)
This 20% bonus deduction is on top of other existing ones - Yeah Baby! So, you can claim both the ordinary deduction for the expense and the bonus deduction - Woohoo! Double the fun, double the savings! Just make sure to keep meticulous records—every energy-efficient penny needs to be accounted for.
But like a good set of steak knives, there's more! While you're checking your eligibility for the energy incentive, don’t forget to see if you can also take advantage of the instant asset write-off. Some biz can claim both, making this an all-in opportunity for max savings. 😉
Let’s Get Energy Efficient
We’re here to help you navigate this new incentive and ensure you’re getting the most out of it. The Small Business Energy Incentive is a fantastic way to support your energy needs and boost your savings. Because at All In, we’re all about lighting the way to smarter, more efficient biz practices.
Ready to go all in on energy savings? Let’s power up those deductions and keep your business buzzing with efficiency and success.
Still have questions? That's OK, feel free to make contact with one of our oh so cool not nerdy team members who can def help you!
Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice
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