Doing your part to slow down climate change may be less expensive than you might think. In addition to saving money on your energy bill for home renovations, there are several federal tax credits that aim to reimburse you for your commitment to energy independence and lower emissions. Most federal tax credits have expiration dates; do not miss out on a chance to save money and the planet.
Residential energy efficient property credit
This federal tax credit is for 30% of the cost of alternative energy equipment installed in or on your home. It includes equipment such as solar water heaters, residential wind turbines, solar electricity equipment. For most properties, there is no dollar limit to this credit, and if the credit is more than the tax you owe, you can carry it forward to the following year tax returns. This credit is valid through 2016, and you may be able to claim installations of qualifying equipment from previous years with documentation. The Residential Energy Efficient Property Credit is not limited to your main home, it also includes other properties you may own, and can be extended to businesses as well.
Green vehicle tax credits
There are several tax credits regarding vehicles that create fewer emissions. The Plug-in Electric Drive Vehicle Credit is for electric vehicles that were purchased after December 31, 2009; the credit minimum is $2,500 and tops out at $7,500. This tax credit will be reduced for a car after the manufacturer has sold 200,000 vehicles, so time is of the essence. The Conversion Kits Credit is a tax incentive worth up to $4,000 for converting a vehicle to a plug-in electric drive motor vehicle anytime after February 17, 2009.
Not only are there several federal tax credits for saving energy and lowering emissions, but some states offer additional tax incentives for switching to green energy. Check www.energy.gov to see local tax incentives and programs that will reward you for slowing down climate change. The energy website also includes information of many non-profit organizations that are trying to assist others in becoming energy independent, save money, and help the environment. One example of the non-profit organizations involved is Solar 4R Schools, which is giving grants to schools for 50%-100% of the costs of solar systems.
Not only are there several federal tax credits for saving energy and lowering emissions, but some states offer additional tax incentives for switching to green energy. Check www.energy.gov to see local tax incentives and programs that will reward you for slowing down climate change. The energy website also includes information of many non-profit organizations that are trying to assist others in becoming energy independent, save money, and help the environment. One example of the non-profit organizations involved is Solar 4R Schools, which is giving grants to schools for 50%-100% of the costs of solar systems.
Websites for more information regarding energy efficiency tax credits and programs:
http://energy.gov/
https://www.energystar.gov/about/federal_tax_credits
http://www.irs.gov/uac/Energy-Incentives-for-Individuals-in-the-American-Recovery-and-Reinvestment-Act
http://energy.gov/
https://www.energystar.gov/about/federal_tax_credits
http://www.irs.gov/uac/Energy-Incentives-for-Individuals-in-the-American-Recovery-and-Reinvestment-Act