Green Taxes- Energy Credits

I’m going to do my taxes today! Thought I would do a quick post on rebates. Since I remodeled and put in all EnergyStar appliances and WaterSense fixtures, I’m hoping this will save me some money! 

• install energy-efficient windows or an energy-efficient boiler or furnace. You can get an aggregate tax credit of up to $500 for doing so, and this will lower your energy bill as well. There are several limitations on the amounts you can claim for various installations, so do your homework before you get started.
• Install a geothermal heat pump and receive an additional $2,000 tax credit. This pump is used to heat and cool your home, and up to $2,000 of the cost of installation can be used as a credit. This credit is separate from the above-mentioned $500 credit.
• Receive a credit for up to 30 percent of the cost of installing a solar power system in your home. This credit is also capped at $2,000, but is separate from the previous credits and will be available for the next 8 years.
• Install a fuel cell or microturbine system in your home and you can claim a credit of $500 for every half kilowatt of capacity within the system.
• If you buy a plug-in hybrid vehicle in 2009, hurry! The first 250,000 buyers get to claim a whopping $7,500 tax credit! This is $4,000 more than the previous hybrid credit!

 Each state has a number of energy-related credits available that can reduce your state taxes

From Sierra Club- 

Visit zoomer.sierraclub.org and click on “energy incentives” for a complete list of both federal tax breaks and incentives and those offered by your own state and local governments. Here are just a few examples of:

• Hybrid vehicle tax credit: this credit varies by make and model, but can up to $3,000.
• Home energy efficiency tax credit: up to $500 for home improvements designed to make your home more energy efficient, such as new windows or a more efficient heating/cooling system.
• Residential solar and fuel cell tax credit: up to $2,000 for installation of a solar electric, solar water heating, or fuel cell system. Any excess credit can be carried forward one additional year.
• Energy subsidy exemption: Any rebates or incentives you receive for energy conservation measures, directly or indirectly, from utilities are not counted as taxable income.