10 Green Tax Breaks
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Being more environmentally friendly is the wave of the future. Many Americans are
incorporating energy saving strategies into their daily lives in a conscious effort to help
protect the environment. Homeowners are also finding that by doing so they can realize
savings on their monthly utility bills. The federal government is now giving Americans
an even bigger incentive by offering tax deductions and credits for using these new
technologies. Here are 10 green tax breaks you can take advantage of.
Vehicles
If you purchase a hybrid vehicle you may qualify for a tax break of between $250
and $3,400. Hybrid vehicles are powered by alternative energy. Certain low burn
diesel vehicles also may qualify for this tax break. The exact amount of the tax
break is determined by the total weight of the vehicle and how much gas is
conserved. Purchase a hybrid for your spouse also and you can claim two green
tax breaks!
Energy Efficient Home Materials
If you install new energy-efficient materials in your home you can earn a $500 tax
credit. Materials that qualify include energy efficient windows, insulation,
roofing systems, exterior doors, air conditioning units and heating units.
Solar
Homeowners with backyard pools or hot tubs can take advantage of solar
powered heating and earn a refund of up to 30% of the expense. The maximum
expense for this green tax break is $2,000.
Windows/Skylights
If you install new energy efficient windows or skylights that meet IECC
standards, you can recapture 10%, up to $200, of the expense.
Exterior Doors
If you install new energy efficient exterior doors you can recapture 10%, up to
$500, of the expense.
Roofing
If you install a new Energy Star certified metal roofing system you can recapture
10%, up to $500, of the expense.
Insulation
If you install new energy efficient insulation you can recapture 10%, up to $500,
of the expense.
Heating/Cooling
Improvements to your heating, cooling and hot water units all qualify for green
tax breaks. $300 tax credits are available for geothermal heat pumps, higher
SEER air conditioning units, air source heat pumps, or any qualifying gas, oil,
propane or electric heat pump water heater. You can earn the $300 tax credit for
each installation.
Gas, Oil, Propane
There is a $150 tax credit available for qualifying gas, oil, propane furnace, or hot
water boilers.
Air Circulating Fan
A $50 refund is in effect for installing an advance main air circulating fan.
In addition to these federal green tax breaks, many individual states have
implemented their own tax breaks for energy efficient improvements. Consult
your state’s new tax laws or contact your local general contractor for more
information on improvements you can make to your home that qualify.
by Jennifer Weldon
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