More and more people are looking for ways to make their lives more energy efficient. Not only can this help save you money, but it can also have an impact on the environment around you. One way that energy efficiency can save you money is through your taxes. When you choose to make energy efficient upgrades in your life, there are different tax credits that you might be eligible for. Mark Dicus & Company is here to talk about several different energy efficient improvements that will help you save on your taxes.
What Energy Efficient Items are Tax Deductible?
When it comes to energy efficient upgrades, the savings that you will see on your taxes rather than deductions. This is a distinct difference because a credit Will reduce the amount of money you owe dollar for dollar. Following are some energy efficient upgrades that can lead to tax credits:
– Electric Vehicles: When you make the switchover to an electric vehicle, you will find significant savings simply because you don’t have to fill the car with gas. You will also for a tax credit known as the Clean Vehicle Credit. You will not be eligible for this unless you are buying a brand new vehicle though. Depending on where you live, you could see savings as large as $7500.
– Electric Vehicle Charger Installation: If you have an electric vehicle charging station installed in your home or at your place of work, you could be eligible for the Alternative Fuel Refueling Property Credit. This credit maxes out at $1000 or 30% of the total cost; whichever one is higher. You would have had to have this installed in 2022 or 2023 to receive this credit.
– Energy Efficient Property Improvements: If you make energy efficient improvements to your property, you can see big savings in tax credits. These improvements include solar hot water heaters, solar panels, and wind turbines. They need to have been installed on your property between January 1st 2022 and December 31st 2032. You will receive a tax credit of up to 30% of the cost of the equipment purchased under the Residential Energy Efficiency Property Credit. If that amount is more than your tax bill, you can roll that over to the next tax year. The equipment has to be installed in the US and at your main residence.
– Other Home Improvements: There are other home improvements that can have an impact on the energy efficiency in your home including insulation upgrades, window upgrades, a new roof, and new doors. The Energy Efficiency Home Improvement Credit will give you 10% of the total cost up to a $500 maximum.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have made some energy efficient upgrades in your life, make sure you are taking advantage of all the tax credits that are available to you. Mark Dicus & Company will make sure you aren’t leaving any money on the table when the IRS is concerned. Call us today!