IRS Tax Help for IRS Tax Savings: A "Green" IRS Tax Credit Can Produce Tax Savings of $10,000 or more!
IRS Tax Credit Bandwagon: It's trendy to be "Green." All the companies are jumping on the "Going Green" bandwagon, even the IRS! In 2009 the IRS will offer Energy Efficiency and Renewable Energy IRS Tax Credits. And if you play your cards right, you can easily receive Tax Savings of over $10,000 simply by using an IRS Tax Credit. Here are six ways to reap maximum Tax Savings with an IRS Tax Credit.
1. IRS Tax Credit: Hybrid Cars:
IRS Tax Help- Start your engines! You'll save money in gas and Taxes if you buy a plug-in Hybrid Car this year. The catch is that you have to be among the first 250,000 people who buy one to qualify. $7,500 of the amount you spend on the car will qualify for the rebate. If you decide to buy a regular Hybrid Car, $3,500 of the amount spent will qualify for the rebate.
IRS Tax Credit: Potential Tax Savings: $11,000
2. IRS Tax Credit: Solar Power:
IRS Tax Help- You can deduct the cost of a new photovoltaic solar system for your home. This Tax Credit existed before, but expired at the end of 2008. Now it's been extended for another eight years.
Potential Tax Savings: $2,000
3. IRS Tax Credit: Geothermal Energy:
IRS Tax Help- Before, you could only save $300 if you installed in-ground heat pumps. Now you can save up to $2,000 and this deduction is completely separate from other energy efficiency deductions you may claim for your household.
IRS Tax Credit: Potential Tax Savings: $2,000
4. IRS Tax Credit: Fuel Cell:
IRS Tax Help- This Tax Break covers the cost of installing fuel cell or micro turbine systems in your home.
Potential Tax Savings: $500
5. IRS Tax Credit: Home Energy Adjustments:
IRS Tax Help- Making your home more energy efficient will be Tax Deductible in 2009. You can deduct the price of new insulation, an improved AC system, or a new furnace. Just remember that you can only deduct the price of the appliance, not the labor.
Potential Tax Savings: $500
6. IRS Tax Credit: State Incentives:
IRS Tax Help- This will vary by your location, but the new Tax Laws allow states to create their own incentives for using energy conserving products. So look into your local state laws and see what you can save.
Potential Tax Savings: Open
IRS Tax Help upgrading to new energy saving products is going to save you money in more ways than just taxes. It will cut the cost of your energy, utility, and gas bills. So it's a good idea to look into upgrading your car and energy usage products next year. Just make sure you consult with a Tax Professional to make sure anything you buy will be Tax Deductible.
