Are carbon credits tax-deductible?
On One Hand: Carbon Credits Are Retail TransactionsCarbon Planet, which sells carbon offsets in Australia, says that its credits are not tax-deductible because they use the money to create real carbon-eliminating projects such as maintaining forests. The money is treated as a retail transaction rather than as a tax-deductible contribution.On the Other: Some Contributions are Tax-DeductibleIf you donate to a nonprofit organization that sells carbon credits, the government treats the donation as a charitable contribution, which makes you eligible for a tax deduction, according to the National Resources Defense Council.Bottom LinePurchasing a carbon credit is not tax-deductible, as it is a purchase of a good.