Green Business Bureau Blog
Green Tax Deductions & Benefits for Going Green
No one really looks forward to tax payment time. In fact there are some who dread it. The good news is you can actually save a significant amount of money come tax time. You can do this by going green. When you go green, it means that you have done efforts to make your home or business environment friendly. You consciously improve your lifestyle to help curb continuing destruction of the environment through irresponsible consumer habits.
Many are unaware that there are a number of tax deductions and tax credits available to those who have gone green. Because of green benefits, the government encourages taxpayers to consider going green. If you are thinking of buying new electric-powered appliances, improving your house and buying a car, consider the following tips to help you save on federal and/or state income taxes.
Buying a car – Check out fuel-efficient hybrid cars. Hybrid cars have less emission compared to ordinary ones. It operates on two engines, electricity and gasoline. Hybrid cars emit less greenhouse gases up to 90%. This increases the car’ reliability if one engine conks out. The federal government gives a tax credit for your hybrid car depending on the type and efficiency of your car. For a high end SUV, you can earn up to $3000 tax credit. You will have to research different types of hybrid cars and their corresponding tax credits. You may also hire a tax consultant to assist you in choosing the right hybrid car. However tax credit is only available to the first 60000 buyers of a particular type and brand. If you really want to save, then you would need to check which hybrid car can give you huge savings. Some states also encourage their residents to buy hybrid cars or electric powered cars through tax breaks. The amount varies among them. Some gives as much $3000 tax break while others give $1000.
Home Insulation – If you need to do major changes at home, you should hire a green construction service. They would know the right cost effective items to put in your house e.g. windows, doors and/or roof for better insulation. Products used should be Energy Star rated or at par with other specific requirements. By doing this, you are assured of 30% tax credit which is applicable to up to $1500.
Charitable contributions – particularly for green causes. Giving to charitable institutions that care for neglected animals and promotes eco friendly products among others can give you a significant tax credit. You not only benefit from lesser tax to pay come tax time but you are also able to express your green contribution to your community.
Heating and Air-conditioning – This type of expense is usually the most costly among other bills save for rent if applicable. For most households, energy consumption can still cost a fortune despite taking proactive measures to decrease cost. This is why Energy Star rated products is recommended in buying/replacing heating and air-conditioning systems. By doing so, you not only save on costly utility bills but you also gain a tax credit up to $30.
So what are you waiting for? Take this advice and you might be on your way to becoming a stress-free and green tax payer.