Stimulus full of energy efficiency tax breaks
Hoping to inject a dose of energy into our sluggish economy, Congress just passed a massive stimulus measure in hopes of getting it back on track.
It’s filled with numerous spending measures aimed at building roads, bridges and other forms of infrastructure. But look closer and you’ll notice that Washington is trying to nudge American homes toward energy efficiency by including numerous tax credits aimed at making our homes greener.
Are you thinking about remodeling your home or renovating your rundown garage or guest house? If you are, you have a wealth of tax credits to take advantage of – all with Uncle Sam’s stamp of approval.
Adding insulation or items like a set of energy efficient windows, heating or air conditioning systems can get you a tax credit of up to 30 percent of the total cost. You can also qualify for a tax credit of the same rate if you make an improvement to your home with alternative energy equipment, such as a solar-powered water heater or a wind turbine.
But Uncle Sam’s new environmental tax credits aren’t limited to the home – they’re also aimed for the road. Purchase a qualified plug-in electric vehicle after February 17 and you can qualify for a tax credit up to $2,500. If you purchase a plug-in electric conversion kit for your car, you can get your hands on a tax credit of up to $4,000.
Saving energy is always a good thing. It’s good for the environment, and it’s good for your wallet. Another good thing is settling your back tax debt with the IRS. That’s a stimulus measure we can help you with that doesn’t require an act of Congress.
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