Businesses have long considered sustainability as a key factor in their operations to appeal to customers, investors, and employees. It’s also a practical choice, as reducing energy, water use, and waste often decreases costs. However, with new legislation like the One, Big, Beautiful Bill Act (OBBBA), federal incentives for sustainability are changing, prompting many businesses to reassess their strategies.
Sustainability Remains a Priority
Despite legislative shifts, sustainability continues to hold value for many companies. A recent survey by Kearney and We Don’t Have Time found that 93% of finance executives see a clear business case for sustainability, and 92% plan to increase their sustainable investments. Though future actions may depend on factors like market conditions, sustainability remains strategically significant across industries.
Changes to Federal Tax Incentives
The OBBBA has altered several long-standing sustainability-related tax breaks:
- Section 179D Deduction for energy-efficient commercial buildings ends for construction beginning after June 30, 2026.
- Qualified Commercial Clean Vehicle Credit now applies only to vehicles bought on or before September 30, 2025.
- Alternative Fuel Vehicle Refueling Property Credit is available only for property placed into service by June 30, 2026.
Businesses should be aware that while federal incentives are phasing out, state and local programs may still offer valuable support for green initiatives.
Developing a Sustainability Strategy
If your business wants to prioritize sustainability, here are four steps to guide your approach:
- Assess Your Baseline: Evaluate your energy use, water consumption, waste generation, and overall carbon footprint.
- Set Clear, Data-Driven Goals: Use reliable metrics and expert guidance to define objectives.
- Consider Logistics and Supply Chain Impacts: Analyze how operations, transportation, and suppliers influence sustainability.
- Engage Your Team: Foster buy-in through open communication and feedback from employees.
Moving Forward Smartly
Even as federal benefits change, sustainability can still be a valuable focus for your business. At SD Mayer, we can assist you in reevaluating your operations, identifying cost-effective solutions, and exploring remaining tax incentives. Together, we’ll find ways to make a positive environmental impact while supporting your bottom line.
Contact us today to learn how we can help your business thrive sustainably.
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Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Fee based planning offered through SDM Advisors, LLC. Third party money management offered through Valmark Advisers, Inc a SEC registered investment advisor. 130 Springside Drive, Suite 300, Akron, Ohio 44333-2431. 1-800-765-5201. SDM Advisors, LLC is a separate entity from Valmark Securities Inc. and Valmark Advisers, Inc. Form CRS Link
DISCLAIMER:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. The services of an appropriate professional should be sought regarding your individual situation.
HYPOTHETICAL DISCLOSURE:
The examples given are hypothetical and for illustrative purposes only.
