Green Tax Credits

June 23, 2009 | Subscribe to our RSS Feed

Going Green? Energy efficiency is on everyone’s mind and was even a platform run on by President Obama. The Government is working hard to incentivize businesses and individuals to go Green. There are several tax credits available for purchasing energy efficient products. Some of the tax credits are new while others are just improved. For individuals, many Energy Star products qualify:

• HVAC
• Water heaters
• Insulation
• Windows/Doors

If you meet the Government’s standards, these purchases qualify for a tax credit of up to 30% of the cost up to $1,500. Larger property such as Solar energy systems and Geo-Thermal heat pumps, among others, also qualify for a 30% of cost tax credit, but are uncapped! Many of the individual credits are currently set to expire 12/31/2010.

On the commercial side, business owners are eligible for a variety of federal tax incentives for improving building energy efficiency. Solar energy systems, Geo-thermal heat pumps, Small wind energy systems, and Microturbine systems all have available tax credits between 10-30%. The energy efficient incentives for these more expensive equipment are currently set to expire 12/31/2016.

There are other tax deductions as well as Government grants available to assist with the purchase of expensive energy efficient property. Proper planning for your purchase can go a long way in helping to offset the cost of “going Green”.