Going green saves on taxes
It’s never too late to learn about the many ways living green can save on your taxes. Well, technically it is for your 2009 tax return, but these credits listed on Pays to Live Green should give you a heads-up for next year. Either way, when living green often means paying more for still-alternative energies, it’s refreshing to know that the government is giving money back to the people. If you’re one of those who took advantage of these on this year’s tax return, bravo, and thanks for helping keep the environment safe for the rest of us.The government offered an outstanding tax credit to those who upgraded their heating and air conditioning system to an Energy Star-rated system. The credit was equal to 30 of the system’s price (with a 1,500 cap). Upgrading your system will also save money in the long run when you see your monthly energy bills go down. Energy Star air conditioners are generally 14 more efficient than normal, while ES heating pumps are anywhere from 8-20 more efficient than what you may already have.If you installed a geothermal heating system last year, you were eligible for a 30 tax credit with no cap. Because it is typically reliant on tectonic plate boundaries (except in the case of enhanced geothermal systems), these sorts of systems can’t be installed everywhere. Also, installation can sometimes involve expensive replacement of your home’s existing duct work. However, this credit goes a long way toward making geothermal heating an attractive offer. The same 30 tax credit is available for those who install wind or solar-powered systemsagain with no cap. This credit will be available through 2016, but remember that for a solar-powered system to be eligible, it must generate more than 50 of the house’s heat.Buying new insulation for doors, windows, or roofing in 2009 made you eligible for another 30 tax credit up to 1,500, as long as the insulation is Energy Star-rated or meets other energy requirements. Finally, hybrid, battery electric, and alternate fuel vehicle buyers were eligible for anywhere from 250-7,500 worth of tax credits. Many of these will be available again next year, so check with a tax consultant to see how going green can help save yougreen.