Well, it’s that time of year again when our minds start thinking about the IRS and our federal tax forms. If you have been going green this year, you may be entitled to some sweet tax credits too! Credits are great because they work like money to pay your tax bill. Deductions, on the other hand,  just reduce your income. Deductions are good, but tax credits are better!

Hybrid cars are one of the most famous tax credits available. You could get back 2 or 3 K just for purchasing a car that is good for the environment and uses less gasoline. Of course, these types of cars do tend to come with hefty price tags, so this doesn’t work out for everybody.

You can find an array of tax incentives for going greet at the database for incentives for renewable energy.

energy tax credits, federal energy tax credit, state energy tax credit

Other energy tax credits may either come from federal or state taxes. Things like conversion to biofuels can earn credit, and a lot of times biofuels are not taxed like regular petro is! I mean, who is going to tax old grease?

Improvements to your home’s energy system, and of course, the addition of solar panels to your home, are big winners here.

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Tax Credits are great things. With deductions, you get to take an amount off of your income, and so your tax will be lowered because your income is less. However, tax credits are treated like money sliced off of the top of your tax bill. A tax credit can even give you a refund over the amount you actually paid in! In other words, a $500 tax credit is usually better than a $500 tax deduction.

How To Get Tax Credits For Solar Energy Home Products

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