May 2010 Tax Tip:
Going Green May Help Reduce Your Taxes!
There are six energy-related tax credits created or expanded by President Obama's American Recovery and Reinvestment Act of 2009. When you invest in these energy-efficient products, you may be able to save money on both your annual energy bills and on your 2010 tax return. The energy-related tax credits are:
- Residential Energy Property Credit - for homeowners who make qualified energy efficient improvements to their homes. This could include adding insulation, exterior windows and heating and air conditioning systems. The maximum credit for improvements that were placed in service in 2009 and 2010 combined is $1,500.
- Residential Energy Efficient Property Credit - for individuals who make qualified residential alternative energy equipment/improvements to their homes. This could be solar hot water heaters, solar electricity equipment, geothermal heat pumps, wind turbines and fuel cell property. The maximum credit for improvements is 30% of the cost of the qualified property and the credit runs through 2016.
- Plug-in Electric Drive Vehicle Credit - for individuals who purchased qualified plug-in electric drive vehicles after December 31, 2009. The maximum credit for a purchase is $7,500 (with a minimum credit of $2,500 depending on the battery capacity) and the credit runs through 2014. This credit is phased out for each manufacturer after they sell 200,000 vehicles.
- Plug-in Electric Vehicle Credit - for individuals who purchased certain low-speed electric vehicles and two or three wheeled vehicles. The maximum credit for a purchase is $2,500 (or up to 10% of the cost of the vehicle whichever is less) for purchase made after February 17, 2009 and before January 1, 2012.
- Conversion Kits - for individuals who converted a vehicle to a qualified plug-in electric drive motor vehicle. The maximum credit for a conversion is $4,000 and the credit runs through 2011.
- Treatment of Alternative Motor Vehicle Credit - for individuals who would like to use their Alternative Motor Vehicle Credit (including the credit for purchasing hybrid vehicles) to be applied against their Alternative Minimum Tax (AMT).
Questions?
If you would like more detailed information, please do not hesitate to contact us.
