While many people find taxes a cause for stress (and for good reason) in their personal finances, I often look at taxes as a treasure hunt. Today’s “save money on your taxes” treasure hunt looks at tax breaks for going green. Not only will you get great tax credits, but you will save money in the long run on energy costs. Environmentally friendly tax breaks The government is offering tax breaks for certain behaviors and efforts that are helpful (or at least less harmful) to the environment. Think on this past year, and consider if you have done any thing that qualifies. If you haven’t, the green tax breaks will still be in effect next year, so you can plan to take advantage of them. Warning: Many of the green tax breaks offered cost some “green” up front. However, between the tax breaks and the energy savings, you likely earn back the investment in three to eight years, depending on what you do. And now, without further ado, a few ways to save money on your taxes with green tax breaks, mostly in the realm of energy efficiency:
- Insulation: Up to $500 back (10% of your cost) to better insulate your home.
- Solar energy: Take advantage of solar fuel cells or solar panels and get up to $2,000 (for each) back. Also, you’ll become more energy-self-sufficient.
- Tax credits are still in place for buying hybrids. But watch out! Some tax credits are being phased out (read: Toyota).
- Home builders: Can receive tax credits for new homes built with energy efficient qualifications.
It is also worth noting that many states (such as New York) offer grants to help offset the costs of making environmentally friendly changes to their homes. Check with your state to see if it offers grants that can help you with the cost of installing solar panels or fuel cells. For more information on using environmentally conscious actions to save money on your taxes, visit TIAP. tax credits, personal finance, financial planning, finances, financial goals, tax breaks, <a href=”http://technorati.com/tag/green tax breaks” rel=” tag?>green tax breaks