Some new businesses are unable to afford environmentally conscious methods of production. A new government program aims to help correct that by offering businesses that are less than five years old a nonrefundable $2000 annual tax credit as an incentive to adopt certain government-approved environmentally conscious production methods. This will allow all interested new businesses to adopt more such methods.
Question
The conclusion that the new government program will allow all new businesses to adopt environmentally conscious production methods is most called into doubt by which of the following, if true?
Choices
A
It costs the average new business $3000 a year to fully implement environmentally conscious methods of production.
confirm your choice
Himu M.
Your answer
B
Not all businesses want to adopt environmentally conscious methods of production.
C
Money that is spent on tax credits to new businesses could instead go directly to environmental conservation programs.
D
Most new businesses have no profits in the first five years, and so have no tax liability.
E
New tax laws significantly increase the tax burden on new businesses by limiting the number of depreciation deductio