Green Tax Credit: Incentives For Energy Efficiency

Green Tax Credit help reduce a taxpayer’s overall tax bill as long as they know what to do to claim it. Read and find out in this article the several ways on how to use the incentives for energy efficiency!

The Green Tax Credit is an indication that the taxes on labor has been changed to environment-related taxes in most parts of the world. Along with this, the incentives related to environment-friendly projects have also been included in the tax legislations of several countries.

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Renewable Energy Incentives

An article on TurboTax states that the Green Tax Credit for renewable home energy systems is a federal tax incentive that covers 30% of the costs of energy systems. These systems include solar electric and solar water heating, small wind-energy properties, and geothermal heat pumps. In addition, these systems must have been put to use after December 31, 2016 but before January 1, 2020.

Unlike most tax incentives, the Green Tax Credit may be used for a second residence and not just for a primary residence. There is no income limit to this tax credit but after 2019, it was reduced until it will expire at the end of this year.

Fuels Savings

According to Kagan, the Green Tax Credit for several hybrid vehicles have already expired. However, there are still ways to claim tax credits for other vehicles. Some fuel cell motor vehicles can qualify for the Alternative Motor Vehicle Tax Credit. The amount of the tax credit varies based on the model, make, and the year the vehicle was made. Furthermore, this tax credit can only be claimed if the buyer is the original owner or lessor of the vehicle. The vehicle must be purchased before 2017 and it must be primarily used to drive in the U.S.

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