TAX CREDITS FOR GREEN-ENERGY CONSUMERS

The government will lend a hand if you decide to make energy-efficient changes in your home or car.  For more information on tax-credits, visit the US government website. Note: Be sure to check with tax experts before proceeding.

Home Improvements
The Internal Revenue Service (IRS) has provided guidance for consumers: Click here for IRS Notice 2006-26.

Tax credits are available for many types of home improvements including:

• additional insulation
• replacement windows
• certain high-efficiency heating and cooling equipment

The maximum amount of homeowner credit for all improvements combined is $500 during the two-year period of the tax credit. This tax credit applies to improvements made from January 1, 2006 through December 31, 2007.

Efficient Cars
Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. The tax credit amount is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models.

These credits are available for vehicles placed in service starting January 1, 2006. For hybrid and diesel vehicles made by each manufacturer, the credit will be phased out over 15 months starting after that manufacturer has sold 60,000 eligible vehicles. For vehicles made by manufacturers that have not reached the end of the phase-out, the credits will end for vehicles placed in service after December 31, 2010.

Solar Energy Systems
Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems placed in service in 2006 and 2007. The tax credit is for 30% of the cost of the system, up to $2,000. This credit is not limited to the $500 home-improvement cap.

Click here for more information on tax credits.