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Case study: Green tax

Case study: Green tax

A multinational high-tech corporation identified tax opportunities to decrease cost and increase returns on its sustainability investments.

A multinational high-tech corporation identified tax opportunities to decrease cost and...

Unlocking millions in cost savings through green tax incentives

Governments worldwide are increasingly using tax as a tool to address the challenges of social and environmental change, but many corporate tax teams are not aware of the landscape of green tax in which they operate and the incentives that may be on offer. Often, there is a disconnect between a company’s tax and sustainability departments. As a result, a multinational high-tech corporation was struggling to justify investments in green infrastructure, despite decades of experience with corporate social responsibility and an established sustainability strategy.

How KPMG helped

A team from KPMG in the US reviewed the company’s sustainability-related capital expenditures and matched them against applicable green tax credits. For example, the client would qualify for an investment tax credit of 30 percent on the cost of solar panels on its premises in the US.

Benefits to the client

As a result, the client can now clearly identify tax opportunities to decrease cost and increase returns on its sustainability investments. The client’s tax and sustainability teams now work more closely together in sourcing the data needed to apply for green tax credits and in aligning capital expenditures with the availability of tax incentives. Similar projects conducted by KPMG member firms have identified green tax savings for clients of up to USD50 million.

 

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