Looking to fix up your house? Here are the 10 tax breaks for going green,
1. If you fix up your house. $1,500 off your tax bill – a 30% credit for the first $5,000 you spend in 2009 or 2010 for improvements to your house energy efficiency. (for further reading: Energy Efficiency Home and Vehicle Tax Credits)
2. Buy a new refrigerator. States are rolling out $300 million worth of rebates for home owners who replaced their clunker apps with new energy-efficient models.(check out Department of Energy approved Energy Efficiency Rebates)
3. Get hot water from the sun. Solar hot water system to heat your shower or radiators (not hot tub or pool) qualify for a 30% federal credit with no dollar cap.
4. Install a solar energy system. Uncle Sam will give you a tax credit equal to 30% of the price of a solar system you install to generate electricity in your home. For a $60,000 system, that’s a whopping $18,000 off your taxes.
5. Take the bus. Bus, train, subway, and van-pool commuters can now get equal tax benefits with those who drive solo to work an pay to park. (up to pre-tax $230 for employers sponsor plans).
6. Buy a Ford hybrid. Taxpayers stuck paying the AMT can finally claim the credit for hybrid cars purchased in 2009 or 2010, but only if they buy Ford motor hybrids. (FYI: Honda and Toyota no longer qualify). Check out Alliance to Save Energy for Vehicle Tax Credits for more info.
7. Plug In a Chevy Volt… slated later for showrooms in November with projected price of $40,000, qualifies for federal tax credit of $7,500. Nissan Leaf coming out in December, should also qualify for the credit.
8. Bike to work. A new law lets your employer reimburse you $20 a month for bicyle commuting as tax-free fringe benefits. Can’t take both with train, it’s one of the other.
9. Dig for heat. Uncle Sam will give you a tax credit for 30% of the cost of geothermal heat pump system that feeds off the warmth in the ground to heat your home.
10. Put a windmill in your yard. A basic residential windmill runs $40,000, but you can get a federal tax credit equal to a full 30% of your windmill cost.More on tax tips “How to Save Money on Going Green” and watch video on ‘Tax Tips for 2010.’
For further reading you can check out few sites:
Alliance to Save Energy: Energy Efficiency Home and Vehicle Tax Credits
Energy Savers Rebates, Tax Credits, Financing: Approved Energy Efficient Appliance Rebates
Virginia Energy Efficient Appliance Rebate Program
Maryland: Residential Incentives and FY 2010 Comprehensive Program Guide
Green DC: Energy Star Appliance Rebates
DSIRE: Database of State Incentives for Renewables and Efficiency