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Green Your Taxes

Green Your Taxes

Today Guest Blogger MP Dunleavey from fills you in on the tax bonuses of going green;

Wouldn’t it be wonderful if you could get a tax break for living a greener life?

As yet, there’s no tax credit for composting, buying organic apples, or using CFL lightbulbs. (Darn, those things are expensive!). But some eco-friendly upgrades can yield big rebates on your 2009 return.

Remember, a tax credit is a sweet deal:

It reduces your tax bill, dollar for dollar (i.e. a $2,000 credit knocks down the amount you owe by… $2,000).

  • If you made energy-efficient home improvements last year (windows, doors, roofs, water heaters, wood or pellet stoves heating/cooling systems, (from a professional HVAC Company) etc.) you can save up to $1,500.
  • If you installed an alternative energy source in your home (wind, solar, etc.), you may qualify for a much bigger tax break: 30% of the cost, with no limit on the amount of the credit.
  • If you bought a hybrid vehicle, you may qualify for a tax credit up to $7,500. And that’s in addition to the vehicle sales tax deduction.

IRS Warning: Of course, you need to double-check that the products you bought qualify under IRS rules.

See Also

Read my piece in The New York Times: Don’t Overlook the Rewards for Thinking Green for more tips and tricks.

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