Being green can save some green here in tax season with residential energy credits. Fully explained in IRS Publication 5695, these credits apply to residential improvements that qualify as energy-saving improvements. There are two types of credits. The Nonbusiness Energy Property Credit accounts for improvements for things such as windows and doors as well as equipment such as air and hot water heaters, stoves, and air conditioners; with a maximum credit of $1500 for improvements made in 2009 and 2010. If you really went wild and got into alternative energy sources such as solar, wind, geothermal, or fuel cells (whatever those are) in 2009 you might qualify for the Residential Energy Efficient Property Credit, a whopping 30% credit. Now you can’t just qualify for anything — these credits apply to equipment matching certain certifications and energy efficiency ratings.
Also, Electric vehicles (EVs) purchased in 2009 and 2010 may be eligible for a federal income tax credit of up to $7,500. And of course there is the Alternative Motor Vehicle Credit if you bought one of these hybrids.
So save those receipts and get some green back for going green.
