Decorating for the Artistic Soul

Going Green Can Save You on Your Taxes

Posted on: January 12, 2009

There are many reasons to decide to “go green” but did you know that it can help you with your taxes as well? If you’re looking for more reasons to become more eco-friendly this year, we have you covered.

Did you know that you can lower your tax bill and receive a tax break for going green this year? Anything you do to make your home more energy efficient is a tax write-off. If you’ve been talking about switching your windows out to new, energy efficient ones or finding a new energy-efficient method of heating your home, you can receive a tax credit of up to $500 in addition to saving money on your energy bill.

Have you ever thought of installing a geothermal heat pump? Maybe you were afraid the costs involved in the install would be too much but did you know that you can get a $2,000 tax credit as well and this is separate from any other energy-saving or eco-friendly tax credit.

You can get a great tax break this year if you purchase a hybrid vehicle such as the Prius. In fact, if you’re thinking of making this change, now is the time to do it. The first 250,000 buyers of 2009 will get a $7,500 tax credit. This is a great deal more than past years’ hybrid car credit.

If you decide to install a solar power system in your home, you can get up to 30% of the cost of installing the system and this will still be available for the next 8 years. These are just some of the main federal tax credits allowed for choosing energy-saving and eco-friendly options. There are more to consider as well.

There are also many state tax credits you can receive for choosing eco-friendly options in your home so be sure to look these up with your state government. Going green can save you a lot of green, especially at tax time!

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