It’s that time of year again – tax time! It won’t be too long before it rolls around again – we all know it comes way too fast. If you are looking to save some money when you file next year, check out these tax credits that you may be able to receive if you make certain green upgrades to your home and lifestyle. Some you may even be able to claim this year if you qualify and the tax credit has successfully been passed.
As an individual, you can receive a tax credit by purchasing a Hybrid energy efficient vehicle. This vehicle does have to be a brand-new vehicle and cannot be a used car or it will not qualify for the tax credit. The vehicle must be bought on or before December 31, 2010. If you aren’t sure whether or not your vehicle qualifies, you can visit the IRS website and see if your vehicle is listed. The IRS has compiled a list together by year, make, and model as well as the approximate tax credit amount.
In addition, beginning this year, if you purchase an electric vehicle that plugs-in with a rechargeable battery, you may be able to claim up to a $7,500 tax credit. You may also find that you can claim your vehicles sales tax as a deduction on your filing this year on vehicles purchased after February 17, 2009 and before the end of the 2009 year.
As for residential green upgrades, if you purchase $5,000 or more in energy efficient improvements for your home then you can claim up to $1,500 – this is for 2009 and 2010 combined for the tax credit and the purchase cost. Installation charges are not included in this $5,000 but products are – windows, insulation, doors, and even some roofs. You can also claim water heaters as well as cooling and heating systems in addition to much more. As with the vehicle deduction, you can check out the IRS website in regards to the new law to see what qualifies and you can also look for the Energy Star design.
There is another credit that will be claimable through the year 2016 – the residential energy efficient property credit. This credit allows for you to take 30% of the cost of an alternative energy source, such as wind turbines or solar panels, and there is no limit on the amount that you can receive including installation.
Energy efficient home improvements and lifestyle changes can obviously make a big difference when it comes to tax time. It is definitely something to consider as you can claim tax credits, create an energy efficient home and save money for years to come.
