JNTUA gbm unit5

1. UNIT -5
Green Techniques and Methods: Green tax incentives and rebates (to green projects and companies); Green project management in action;
Business redesign; Eco-commerce models.
GREEN TAXES:
Green taxes are excise taxes on environmental pollutants or on
goods whose use produces such pollutants. It is the tax paid by the
consumers for products that are not environmental friendly. The
purpose of green tax is to offset the negative impact resulting from
the use of non-green products. Environmental taxes or pollution tax.
REASONS FOR GREEN TAX:
They are particularly effective instruments for the internalization of
externalities, i.e., the incorporation of the costs of environmental
services and damages (and their repairs) directly into the prices of
the goods, services or activities which cause them; contributing to
the implementation of the Polluter Pays Principle and to the
integration of economic and environmental policies;
They can provide incentives for both consumers and producers to
change their behaviour towards a more ‘eco-efficient’ use of
resources; to stimulate innovation and structural changes; and to
reinforce compliance with regulations;
They can raise revenue which may be used to improve
environmental expenditures; and/or to reduce taxes on labour,
capital and savings.
They can be particularly effective policy tools to tackle current
environmental priorities from such ‘dif fuse’ pollution sources as
transport emissions (including air and maritime transport), waste
(e.g. packaging, batteries), and chemicals used in agriculture (e.g.
pesticides and fertilisers).
TYPES OF GREEN TAXES:

2. cost-covering charges: designed to cover the costs of
environmental services and abatement measures, such as water
treatment (user charges) and which may be used for related
environmental expenditures (earmarked charges).
Incentive taxes - designed to change the behaviour of producers
and/or consumers; and
Fiscal environmental taxes - designed primarily to raise revenues
BUSINESS INCENTIVES:
i. Commercial Buildings
ii. Commercial Vehicles
iii. Combined Heat and Power
iv. On-Site Renewables
v. Fuel Cells & Microturbines
i. Commercial Buildings:
Businesses can get deductions for new or renovated buildings
that save 50% or more of projected annual energy costs for heating,
cooling, and lighting compared to model national standards, and
partial deductions for efficiency improvements to individual
lighting, HVAC and water heating, or envelope systems.
A tax deduction of up to $1.80 per square foot is available to
owners or tenants (or designers, in the case of government-owned
buildings) of new or existing commercial buildings that are
constructed or reconstructed to save at least 50% of the heating,
cooling, ventilation, water heating, and interior lighting energy cost
of a building.
Partial deductions of $.60 per square foot can be taken for
improvements to one of three building systems that reduce total
heating, cooling, ventilation, water heating and interior lighting
energy use by a certain percentage—the building envelope (10%),
lighting (20%), or heating and cooling system (20%).
ii. Commercial (Heavy-Duty) Vehicles
Credits are available to businesses as for consumers, including
heavy-duty hybrid gasoline-electric vehicles.
Buyers of heavy-duty hybrid vehicles can receive credits based on
the weight class of the vehicle, its fuel economy relative to a
comparable conventional vehicle, and the incremental cost. The

3. vehicle must also meet a threshold value of "maximum available
power," a measure of the percentage of total vehicle power available
from the rechargeable energy storage system of the vehicle.
iii. Combined Heat and Power:
Investment tax credit for combined heat & power systems (CHP)
A 10% investment tax credit for CHP property, applicable to
only the first 15MW of CHP property.
The incentive is an investment tax credit, a reduction in either
overall individual or overall business tax liabilities. The
incentive can also be applied to the alternative minimum tax.
CHP system owners/users cannot take the credit until the year
that the system is operational.
iv. On-Site Renewable Tax Incentives:
Businesses are eligible for tax credits for qualified solar water
heating and photovoltaic systems, and for certain solar lighting
systems
Solar Energy Systems
Businesses are eligible for tax credits for qualified solar water
heating and photovoltaic systems, and for certain solar lighting
systems. Qualifying equipment will either use solar energy to
generate electricity, to heat/cool or provide hot water to a
structure, or will use solar energy to illuminate the inside of a
building by means of fiber-optic distributed sunlight (tube
systems and passive solar are not eligible).
Small Wind Systems
Owners of small wind systems with 100 kilowatts (kW) of
capacity and less can receive a credit for 30% of the total
installed cost of the system.
Geothermal Heat Pumps
Qualified geothermal heat pump property refers to any
equipment which uses the ground or ground water as a thermal
energy source to heat the taxpayer's residence, or as a thermal
energy sink to cool the residence. The unit must meet the
requirements of the Energy Star program, which are in effect
when the heat pump is purchased.
v. Fuel Cells & Microturbines:

4. In addition to a fuel cell credit like that for consumers, credits
are available to businesses who install qualifying microturbines.
These systems, which typically run on natural gas, are small
power-producing systems sized to run small to medium size
commercial buildings.
These incentives are tax credits for two advanced distributed
generation technologies: qualifying fuel cell and microturbine
systems. Fuel cells generate electricity through a chemical
process. They are somewhat similar to batteries, except fuel
must be fed continuously to them. Microturbines are small
power generation systems using a gas turbine engine, based on
related turbines used in transportation.