Get Green To Go Green!

Do you know Congress’ favorite color?

We're not positive…but we'd be willing to bet its GREEN!

It’s no secret that our leaders in DC want you to go green… and we don’t mean by eating warm potato salad for Labor Day!

We all know America needs to reduce its dependency on foreign energy. We also need to decrease our negative impact on the environment.

Here's the great thing…the gang on Capitol Hill is willing to put some extra cash in your pocket when you’re nice to the environment.

In the 2009 Recovery Act, there are several new and updated provisions to encourage businesses and individuals to join the “green movement” and become more energy efficient. Of course, with these incentives the government is also encouraging you to spend a little of your green cash which should stimulate the economy.

Plug-In and fill up your wallet!

There was already a tax credit for plug-in electric vehicles but the new legislation increases the amount to a maximum of $7,500. They also expanded the definition of what types of vehicles qualify to include electric motorcycles, three-wheel vehicles, “neighborhood electric vehicles” and cars that have been converted from gas to electric.

There’s No Place Like Home (or the Residential Energy Property Credit)!

Under the stimulus package, the Residential Energy Property Credit allows a tax credit for eligible property renovations and improvements made during calendar years 2009 and 2010. If you have considered making some energy-saving improvements, now would be a good time to start because the government is willing to help with some of the cost. (Oh, like I need another excuse to spend Saturday morning at the local home improvement store.)

Here are some of the modifications:

• Increase of the residential energy property tax credit to 30% (from 10%)
• Increase of the maximum cap to $1,500 aggregate amount for 2009 and 2010 installations
• Elimination of the $500 lifetime cap

The list of eligible expenses has been expanded to include insulation materials, exterior windows and doors, central air conditioners, natural gas, propane or oil water heaters and furnaces, hot water boilers, electric heat-pump water heaters, certain metal roofs and stoves, and advanced main air-circulating fans.

A related credit is the Residential Energy-Efficient Property Credit which has been modified to include removal of individual dollar caps under credit regulations for solar hot water property, geothermal heat pumps, and wind energy property. A $500 tax credit cap is placed on all qualified fuel cell property expenses.

Love That New Car Smell!

While this tax incentive is technically not a part of the “green movement”, you can receive a deduction for sales and excise taxes for purchasing a new car/truck/SUV/motorcycle/RV with a cost of up to $49,500.

So, if you’re looking to trade in your old gas-guzzler for a more fuel efficient model, you could “double dip” by taking advantage of both the sales/excise tax deduction AND save up to an additional $4,500 with the Cars Allowance Rebate System. 

Plan For These Tax Breaks and Others

The key to reducing your income taxes is to know where you currently stand and what tax breaks you may receive from the recent law changes. Planning is the key when it comes to minimizing your tax burden.  

If you have questions concerning your eligibility for these a credits and incentives, please give PRO-TAX a call at 1-800-809-2829.

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