Tax Credits for Taking Energy Efficiency into Your Own Hands!

Take a peak at the energy star website to see what kinds of purchases you can receive tax credits on!

It's not like a deduction- it doesn't reduce your tax burden by just minimizing the amount of income that you must pay taxes on. If you have a deduction, say $100, that means that you'll not have to pay your normal (highest) tax rate for that $100.

Tax credits are a direct write-off of your tax burden. What this means: If you have a tax credit of $100 then whatever tax you may owe is decreased by $100. If you are all paid up and are owed a refund, then your refund will increase by $100!

So, what can you take tax credits on?! Well, a number of things, each to which a number of caveats apply:

Energy efficient/Energy-Star rated:

"Doors and Windows
Roofing
Insulation
HVAC units
Water Heaters
Cars
Solar Energy Systems, and
Fuel Cells"

You can read all about the applicable credits on this page:

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s1

I am not a professional tax advisor, nor am I qualified to offer tax advice. Anything written on this page or this blog should not be taken as qualified advice. Consult a tax or investing professional for any assistance you need.