If you are one of those conscious people that made smart decisions last year, this is the time to take advantage of the green tax incentives created as a part of the America Recovery and Reinvestment Act
This law increase the energy tax credit for homeowners who make energy efficient improvements to their existing homes. Increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009. In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as tax incentives for the use of residential renewable energy, and automobile tax credits.
Credits for efficient home improvements:
Tax Credit: 30 % of cost up to $1500.00
This credits will help taxpayers that create more energy efficiency homes and will be apply just to their primary residence, new construction and rentals do not relate. This credit refers to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems as well as Biomass stove, water heaters. If you purchase Energy Star products, you may also be eligible for credit, but keep in mind that not all Energy Star products will qualify.
Credits for residential renewable energy:
Tax credit: 30% tax credit with no maximum
This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. This credit will apply to new and existing construction, must be a primary residence. Rentals and secondary residence won’t qualify.
The Energy Star program offer credit in for fuel cell products that have the capacity to produce at least 0.5 kilowatts of power may be eligible for 30 % up to $500 max credit per 0.5 kW.
To apply for this credits you have to use IRS Form 5695.
Credits for plug-in electric vehicle:
This law also creates a tax credit for two types of plug-in vehicles — certain low-speed electric vehicles and two- or three-wheeled vehicles. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500. To qualify, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kilowatt hours or more or be a two- or three-wheeled vehicle propelled by an electric motor that draws electricity from a battery with the capacity of 2.5 kilowatt hours. For more information see IR-2009-44.
Credit for alternative motor vehicle:
If you bought a hybrid, battery electric or alternate fuel vehicle, be sure to take advantage of this tax credit. The tax reduction depends on the particular vehicle you purchase and how efficient the vehicle is.
Some hybrids purchased between April 1, 2009, and Sept. 30, 2009, are eligible for a 50 percent credit and eligible Ford hybrids purchased prior to March 31, 2010 will be eligible for a 25 percent credit. For more information on hybrid tax credit see the IRS 2010 list.
Congratulation, now you are not only getting an smart break through your tax bill, but also a saving on your electrical bills contributing this way to save the environment and leaving a green footprint for others to follow.
By Maria M. Hernandez
H & H Design and Construction.
