Tax Credits for Energy Efficiency
Consumers who purchase specific products, such as energy-efficient windows, insulation, doors, roofs and heating and cooling equipment in the home can receive a tax credit of up to $500 for improvements starting 1/1/09-12/31/09.
Residental Renewable Energy Tax Credits
Consumers who install solar electric systems can receive a 30% tax credit for systems plaved in service for 1/1/06-12/31/16; the previous tax credit cap of $2,000 not longer applies. Geothermal heat pumps also qualify for tax credits up to $2,000.
Automotive Tax Credits
Individuals who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles after 1/1/06, and purchased on or before 12/31/10. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.
This tax credit will be phased out for each manufacturer as each company sees 60,000 eligible vehicles. If an individual or business buys more than one vehicle, they are eligible to receive a tax credit for each.
See www.energystar.gov for a complete summary of energy efficiency tax credits available to consumers. Also, www.energy.gov/taxbreaks.htm.
Did You Know?
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed.