In this transcript from a video by Steven J Wick & Associates PC, Steve Wick explains key concepts around renewable energy company accounting — from tax considerations to structuring financial records properly as your project grows. This video highlights common challenges renewable energy businesses face and offers practical insights for staying compliant and financially organized.
To learn more about how to manage reporting, tax credits, and compliance effectively, check out our detailed article on accounting for renewable energy companies.
Please note that this video is informational only and does not constitute legal or tax advice; every situation is different, and we strongly recommend contacting a qualified CPA to review your specific case. Steve Wick and his team in Fort Collins regularly work with renewable energy companies and provide guidance tailored to unique business needs.
00:00:00 – 00:00:04
Intro: What Types of Renewable Energy Companies Are These?
These renewable energy type companies, what type of companies are they?
00:00:04 – 00:00:20
Engineering Focused Around Natural Gas Efficiency
There’s one that that designs a lot of different things that are related to natural gas and how to burn it more efficiently and how to package it better. So they’re mostly an engineering company.
00:00:20 – 00:00:25
Subcontracted Manufacturing
They don’t manufacture they subcontracted out. There is that type of industry.
00:00:25 – 00:00:35
Role of the Small Business Accountant
As a small business accountant working for them. What’s the nature of the kind of work that you do for them and what kind of challenges, what’s unique to their type of business? What type of challenges do they have?
00:00:35 – 00:00:46
Research and Development Every Year
For them there’s a lot of research and development every year. Designing new products. I’m constantly working with them for research and development credits.
00:00:46 – 00:01:06
Qualifying for R&D Credits: The Four Gates
In order to qualify, you need to go through four gates, which you have to be able to document what you’ve done, how you’ve done it, what different methodologies you used. Failure is actually a good thing when it comes to R and D credits to show that you’re testing and, and doing the scientific methodology to get to your end process.
00:01:06 – 00:01:13
Process or Product Development
And it could be a process, it could be a product. There are a lot of different pieces to it.
00:01:13 – 00:01:25
Do Companies Understand R&D Requirements?
Do they naturally know how to do that, or is that something you have to help them with a lot or…
00:01:25 – 00:01:38
Helping Businesses Recognize R&D Activities
There’s definitely some help that needs to happen. And depending upon the, the size of the product and the project, because some of them are, are, are large. A lot of times like small businesses in general, don’t even realize that they’re doing R and D. Wwe document those and help them through those pieces.
00:01:38 – 00:01:53
What Kind of Credits Are We Talking About?
What are we talking about in terms of credits? I mean, what kind of amounts of money are at stake?
00:01:53 – 00:02:12
How Much R&D Credits Can Be Worth
It depends upon how much is done. Just this year, I’ve got one client that is getting roughly $50,000 and another client that’s getting about $100,000 in R and D credits. Those are the big ones. Some of the smaller ones are $5-15,000.
00:02:12 – 00:02:24
Time Investment and Tax Return Credits
The one that got a hundred thousand dollars, and there’s probably about 20 hours or work into that job. It’s a credit on their tax returns. Much of what we do is credit. This year is thousands of them. It’s crazy. So, but yes.
Accounting for Renewable Energy Companies — Conclusion
Proper accounting practices are essential for renewable energy companies navigating incentives, depreciation rules, and complex project financing. By understanding how your records, tax strategy, and compliance responsibilities fit together, you’ll place your business in a stronger position for long-term growth. If you operate or plan to launch a renewable energy company, partnering with an experienced CPA can help you avoid costly mistakes and optimize every available benefit. Let us know if you’d like help refining this page further or integrating SEO elements around the transcript.
