{"id":17441,"date":"2025-11-04T20:24:07","date_gmt":"2025-11-05T02:24:07","guid":{"rendered":"https:\/\/www.sfw.cpa\/news-and-guides\/?p=17441"},"modified":"2025-11-04T14:24:06","modified_gmt":"2025-11-04T20:24:06","slug":"businesses-can-still-choose-to-address-sustainability","status":"publish","type":"post","link":"https:\/\/www.sfw.cpa\/news-and-guides\/businesses-can-still-choose-to-address-sustainability\/","title":{"rendered":"Businesses can still choose to address sustainability"},"content":{"rendered":"

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For many years, businesses of all shapes and sizes have at least considered sustainability when running their operations. Many people \u2014 including customers, investors, employees and job candidates \u2014 care about how a company impacts the environment. And reducing energy use, water consumption and waste generally lowers operational costs.<\/p>\n

However, the current \u201cenvironment regarding the environment,\u201d has changed. With the passage of the One, Big, Beautiful Bill Act (OBBBA), the federal government has disincentivized businesses from taking certain green measures. So, you may be reevaluating your company\u2019s stance on sustainability.<\/p>\n

Apparent interest<\/strong><\/p>\n

According to one survey, a serious interest in sustainability remains present among many businesses. In February, management consultancy Kearney, in association with climate action media platform We Don\u2019t Have Time, released the results of a survey of more than 500 finance executives from companies in the United States, United Kingdom, United Arab Emirates and\u00a0India.<\/p>\n

Of those respondents, 93% said they saw a clear business case for sustainability. Meanwhile, 92% expected to invest more in sustainability this year \u2014 with 62% of respondents saying they planned to allocate more than 2.1% of revenue to sustainability in\u00a02025.<\/p>\n

Now whether and how fully these investments come to fruition this year is hard to say. However, the fact remains that sustainability has been and will likely continue to be a strategically significant factor in many industries.<\/p>\n

Vanishing tax breaks<\/strong><\/p>\n

As mentioned, the OBBBA has thrown a wrench into tax relief related to certain sustainable measures.<\/p>\n

For example, the Section\u00a0179D Energy Efficient Commercial Buildings Deduction has been around since 2006. It got a big boost from the Inflation Reduction Act (IRA) of 2022, which increased the potential size of the deduction and expanded the pool of eligible taxpayers. However, the OBBBA permanently eliminates this tax break for buildings or systems on which construction begins after June\u00a030,\u00a02026.<\/p>\n

The OBBBA also nixes an incentive for the business use of \u201cclean\u201d vehicles. The Qualified Commercial Clean Vehicle Credit, under Sec.\u00a045W of the tax code, hadn\u2019t been previously scheduled to expire until after 2032. However, it\u2019s now available only for vehicles acquired on or before September\u00a030, 2025. Depending on vehicle weight, the maximum credit is up to $7,500 or $40,000.<\/p>\n

Has your company installed an electric vehicle charger or another qualified dispenser of or storage facility for clean-burning fuel? If so, you may be able to claim the Alternative Fuel Vehicle Refueling Property Credit under Sec.\u00a030C of the tax code. The IRA had scheduled the credit \u2014 which is worth up to $100,000 per item \u2014 to sunset after 2032. But under the OBBBA, eligible property must be placed in service on or before June\u00a030, 2026, to\u00a0qualify.<\/p>\n

Tailored strategy<\/strong><\/p>\n

Where does all this leave your business? Well, naturally, it\u2019s up to you and your leadership team whether you want to address sustainability and, if you decide to do so, precisely how. Typically, when devising or revising a strategy in this area, your company should:<\/p>\n