Energize Your Life With These Tax Incentives

Are you making the most of energy tax incentives? You can save energy and money by qualifying for these rebates and tax credits:

• Cash for Appliances. It’s the 2010 version of “Cash for Clunkers” but you get the rebate when you buy new energy-efficient appliances. Funded with $300 million from the stimulus package, the program is conducted at the state level. Visit your state’s energy office web site for details.

• Home Energy Efficiency Improvement Tax Credits. If you install certain products, such as energy-efficient windows, insulation, roofing, and heating and cooling equipment in an existing home, you can receive a federal tax credit for 30 percent of the cost (up to $1,500) for improvements “placed in service” from Jan. 1, 2009 through Dec. 31, 2010. Go to www.energystar.gov for specifics.

• Residential Renewable Energy Tax Credits. Install a solar energy system (including solar water heaters) and receive a 30 percent tax credit if it’s placed in service before Dec. 31, 2016. (The previous tax credit cap no longer applies.)

• Auto Tax Credits. If you buy or lease a new hybrid gas/electric car or truck, you’re eligible for an income tax credit for vehicles placed in service from Jan. 1, 2006 to Dec. 31, 2010. This will be phased out for each manufacturer when they sell 60,000 eligible vehicles. Tax credits also are available for alternative-fuel vehicles, diesel vehicles with advance lean-burn technologies and fuel-cell vehicles. See the IRS web site for vehicle specifics.

For more information on local, utility and federal incentives that promote energy efficiency, check out the Database of State Incentives for Renewables & Efficiency at www.dsireusa.org.