Tax Deductions for Your Green Hotel
Cashing In on a Good Thing
ROBBINSVILLE, N.J. - If there's one document on the face of the earth that has frustrated and baffled people the most, it is probably the U.S. tax code. Trying to understand that mountain of legal-eseis enough to give even the most competent tax accountant a splitting headache.
But here's some tax incentive news that isbound to make green hotel owners and designerssmile: owners of existing commercial buildings that improve their energy efficiency by at least 50% can earn a tax deduction of up to $1.80 per square foot! And so can designers of newly constructed high efficiencycommercial buildings.
And a partial deduction of $0.60 per square foot is available for those investing in lighting, HVAC, or building envelope upgrades that reduce consumption by less than 50%.
That means energy efficient green hotels that have reducedtheir energy consumptioncan earn a big break on their taxes - money that can definitely be used tohelp offset the cost of the upgrades.
One cool feature of this tax break is that it is retroactive. Upgrades and construction done at your green hotel between January 1, 2006 and December 31, 2008 may qualify you for the deduction.
Now, you do have to jump through quite a few hoops to qualify for the deductions, but the rewards are worth it. For starters, you have to use software tools approved by the Department of Energy. You also have to establish benchmarks, set energy efficiency goals, and implement the upgrades.
Here is a standard guideline to help you get started:
- Get some perspective. Find out what hotels nationwide are implementing and what makes sense specifically for your hotel property. If you do not have a dedicated individual to focus on the strategy consider hiring a sustainability consultant.
- Score your property. Find out how you stand up to hotels across the country and your competition. Learn about the Energy Star rating system and how you can get your property Energy Star score. Once you have benchmarked your property you can determine next steps as your sustainability strategy and goals including finding the right software tools.
- Take action. Analyze your property to create and Implement your sustainability business strategy. With strained economic times, make sure you are investing in the right technologies at the right price. Take advantage of professional service providers to help take the guesswork out of how to "green" your hotel and find available tax incentives for your hotel.
Make sure to engage sustainability service providers that understand the hospitality business - this is very important because hotel operations are different from other industries and energy conservation measures may not always apply to a hotel.
We know this sound complicated. It does not have to be - you do not have to do it alone. Get some help from EcoGreenHotel, the experts in securing tax incentives, rebates and grants for energy efficiency projects at green hotels from coast to coast. The EcoGreenHotel team of professionals hassuccessfully guided hotel properties just like yours through the tax deduction process. We know how to get it done right the first time.