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Green Tax Breaks is a new
feature of Snavely King’s Clean Environment Initiative. Drawing on available
resources, we are summarizing those aspects of tax law that appear to provide
incentives for individuals to Go Green.
The Energy Tax Incentives Act
of 2005 (Also known as the Energy Policy Act of 2005), includes a $14.5 billion
tax component. A portion consists of provisions geared to individuals and small
businesses.
The law provides various tax
credits to homeowners making home improvements resulting in a more energy
efficient home. Some of these improvements include structural upgrades such as
window replacements or improved insulation, as well as modular upgrades
including appliances and other energy consuming items.
Consumers are also eligible
for tax breaks based on investments in energy efficient technologies.
Investments may be either through bonds purchased in renewable energy producers
or investments in cleaner burning products such as hybrid vehicles.
These tax breaks are available
to everyone, regardless of income or tax bracket. However, the tax breaks are
available for a limited duration. To claim tax breaks relating to home
improvement, the upgrades must be made before the end of calendar year 2007.
The following list is
preliminary summary of available tax credits as we intend to expand this
feature. This list is not all-inclusive. We are searching for more tax breaks
and other incentives. Please discuss any of these possible tax breaks with your
CPA or tax attorney to determine your eligibility and amount of your particular
break.
Taxpayers holding bonds in clean renewable energy
are allowed a credit against tax imposed for up to 25% of the annual credit
determined with respect to the bond.
Tax credits ranging from $500 up to $2000 are
available to homeowners who have constructed, purchased or refurbished a
dwelling unit which meets, after construction or improvements, government
requirements to be qualified as a “new energy efficient home.”
Tax credits are available for each type of
qualified energy efficient appliance acquired by the taxpayer during the
calendar year ending with or within the taxable year.
There shall be a credit against the tax for
expenditures made during the taxable year for individuals who have acquired
photovoltaic, solar water heating and/or fuel cell properties.
Taxpayers shall be allowed a credit against the
tax imposed for the purchase of an alternative fuel vehicle purchased during the
taxable year. Vehicles qualifying as alternative motor vehicles are, but not
limited to: fuel cell motor vehicles, advanced lean burn technology vehicles,
hybrid motor vehicles, or other new qualified alternative fuel motor vehicles.
Tax credits up to $40,000 are available depending on fuel economy and gross
vehicle weight.
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