It’s tax season—yay! (No one ever said that.) But since it’s here, we compiled a list of a few incentives available to help you save some money. Tax incentives encourage individuals and businesses to adopt energy-efficient practices and emerging technologies. Here are some common types of tax incentives that may be available.
Tax credits and incentives for becoming energy efficient
Federal Tax Credits: The United States offers federal tax credits for energy-efficient home improvements and renewable energy installations. These credits can apply to solar panels, energy-efficient windows, doors, and HVAC systems. The specific credits and their amounts may change from year to year, so it is recommended to consult a tax professional for the latest information.
Energy-Efficient Appliance Rebates: Texas offers rebates or tax incentives for purchasing energy-efficient appliances, such as ENERGY STAR-rated products and other energy-efficient home upgrades. If you’ve upgraded your washer, refrigerator, or air conditioner, tax incentives are available to help offset the initial cost of the upgrade. Check the Texas Comptroller’s website for more energy-efficient tax rebates.
Renewable Energy Tax Credits: Incentives for renewable energy projects, such as wind and solar installations, can also be available. These may include investment tax credits or production tax credits for renewable energy generation.
Electric Vehicle (EV) Tax Credits: Tax credits for purchasing electric vehicles or plug-in hybrid electric vehicles are common in many states. These credits can help offset the cost of buying an energy-efficient vehicle. As you do your part to save the environment, take advantage of the opportunity to save money with EV Tax Credits.
Green Bonds: Some governments issue green bonds that provide tax incentives for investments in environmentally friendly projects, including energy efficiency initiatives. In 2022, the US was the second-largest issuer of green bonds, with $64.4 billion in bonds issued. In 2021, the US issued over $90 billion in green bonds.
Check Incentives to take advantage of the tax credits available to you
It is essential to note that the availability and specific details of these incentives, as well as others, are subject to change. Check with a tax professional for the most up-to-date information on energy efficiency tax incentives available. Ensure that you understand both the requirements to qualify for these incentives and the associated limitations. The last thing that anyone wants is to get in trouble with Uncle Sam. With the rising cost of living, everyone is searching for ways to save money wherever and whenever possible. To save throughout the year, make a few changes to reduce your energy usage.