Save Money and Energy

Yes you read that right!

You can save money and energy with the new tax credits!   Home energy improvements are now more affordable then ever!  homeowners who install renewable energy systems or take steps to make their homes more energy efficient can qualify for significant federal tax credits this year.

Some of those home energy tax credits are in effect for 2009 and 2010, while others are available through 2016.  Many of the tax credits went into effect in January 2009, but have been expanded over the last year as part of the economic stimulus plan.

All this is good news for your wallet, because these tax credits can help you pay for energy upgrades that can save big bucks over time.  It’s also good news for the planet because it encourages the development of clean, sustainable renewable energy and reduces the use of polluting fossil fuels.

How does this save me money?

Whether you’re buying a wind turbine or new windows, most home energy improvements require spending money now to save money later through reduced energy bills.  HOw it all pencils out will depend on the details of your project, but tith the federal tax credits, you can count on getting some money back quickly.  You’ll also reduce the “payback period” of your home energy improvements.  The time it takes for your project to pay for itself in reduced energy bills.

What Exactly is Covered?

For a summary of the incentives, go to www.energytaxincentives.org.  It has more details and links to the tax forms you’ll need.  Another good source for the latest news on available tax credtis is www.energystar.gov/taxcredits.

Here’s a general idea of what’s included.  Taxpayers can receive a tax credit up to a maximum of $1,500 for making home improvements to increase energy efficiency.  These improvements may include installing new windows, additional insulation, and more energy efficient water heaters and furnaces.  Up to 30% of the cost of the system with no upper limit, which can add up to thousands of dollars in savings.  Solar panels, solar water heaters, small wind energy systems, fuel cells and geothermal heat pumps are all covered.

There are also tax credits available for plug in hybrid cars.  $2,500 – $7,500, which will apply to vehicles such as the Chevrolet Volt, due to be released in 2010.  More limited tax credits are still available for some hybrid cars, including Ford, GM, and Nissan models.

So What else do I need to know?

Before you invest in any of these projects, be sure to read all the fine print, because all of these tax credits have some restrictions.  Check the dates that your renewable energy systems must be placed in service to qulify.  Also, check carefully to be sure that the specific product your buying qualifies for the tax credit.  You can find more information on the Energy Star website.

Don’t forget that you may be eligible for additional state or local incentives.  You can find out more about what is available by visiting the Database of State Incentives for Renewable and Efficiency website.  (www.dsireusa.org)

thank you motherearthnews for this great information!