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Investment Planning |
Energy Tax Breaks
Here are some new energy tax breaks that can translate into tax credits for you. A credit for tax is much better than a deduction, since the credit comes off the top of your income.
Hybrid Cars - Some buyers of hybrid vehicles can claim a credit depending upon the car's fuel economy and the make and model of the car. See our Hybrid Cars tip for more information.
Home Improvements - Installing the following energy savers in your primary home can get you a small tax credit: skylights, outside doors, windows, pigmented roofs, high-efficiency furnaces, water heaters, and central-air conditioners. A maximum home-improvement credit of $1,500 is available based upon 30% of the cost of the improvement.
Solar Energy - Homeowners may receive credits for 30% of the cost of solar air or water heaters put in use. Solar units used to heat pools or hot tubs, however, do not qualify. This credit is good for primary and secondary residences and is capped at $1,500 each for home furnaces and water heaters.
Tips Disclaimer
These tips contain information that may change over time as a result of new tax legislation. Although we make efforts to keep this information current, you should check with your tax advisor before taking action based upon any information contained in these tips.