It’s tax season – yay! (said no one ever) 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.
Federal Tax Credits: The United States offers federal tax credits for energy-efficient home improvements and renewable energy installations. These credits can apply to things like solar panels, energy efficient windows, doors, and HVAC systems. The specific credits and their amounts can change from year to year, so check with 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 upgraded your washer or refrigerator, or even your AC, there are tax incentives which can help offset the initial cost of upgrading. Check the Texas Comptroller website for more energy efficient tax rebates you may qualify for before submitting your return.
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 hybrids 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 and save some 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 bonds issued. In 2021, the US issued over $90 billion green bonds.
It’s important to note that the availability and specific details of these incentives and others can change. Check with a tax professional for the most up-to-date information on energy efficiency tax incentives available. Make sure that you understand both the requirements to qualify for such incentives as well as limitations that may exist. The last thing that anyone wants is to get in trouble with Uncle Sam. With the cost of living up, everyone is searching for ways to save money where and when they can. To save throughout the year, make a few changes to reduce your energy usage.