Green Tax Credits

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Besides the benefits of reducing your environmental footprint, using "green" energy products can also get you some tax breaks.

The government has incentivized using energy    efficient products and renewable energy systems by offering tax credits.  Here are some green tax credits you should consider when filing for taxes this year, as well as preparing for next year.

Home Improvement
By making your home more energy efficient with ENERGY STAR certified products, you will not only save on your utility bills, but can also get 30 percent of the cost of improvements up to $1,500 back.  These improvements include insulating your house, using HVAC heating and air conditioning, and using metal or asphalt roofing  materials to reflect heat.  Keep in mind that this credit expires on Dec. 31, 2010.

Alternative Fuel
Using wind mill energy, solar energy and geothermal heat will qualify you for a tax credit that doesn't expire until December of 2016.  By using alternative energy sources in your primary or secondary residences (if you own the properties), you can get back 30 percent of the total cost of improvements.

You can learn how to apply to the above tax redits by visiting EnergyStar.com. 

Hybrid Vehicles
Buying a hybrid or electric vehicle can qualify you for a tax credit of up to $7,500 depending on the vehicle.  Although these vehicles are often more expensive off the lot, they will save you money on expensive gasoline in the long term.  For a full list of qualifying vehicles, visit FuelEconomy.gov.   

These tax breaks are available to individuals, but businesses can also qualify by making energy-efficient improvements to office buildings and company vehicles.  For more information on how to start or transition to a green business, see the Green Business Guide.

Remember that going green isn't done overnight.  If you haven't made energy-efficient changes in time for the 2009 tax season, start preparing now for 2010.