The U.S. government wants to reduce our carbon footprint bad enough that they're willing to pay us to help out. The American Recovery and Reinvestment Act of 2009 (the stimulus bill) extended many consumer tax incentives for making your home more energy efficient. For example, tax credits are available for existing homes and new construction that install geothermal heat pumps, solar panels and small wind-energy systems, to name a few.
The government also offers significant breaks on your taxes for buying hybrid or electric vehicles. Want to buy a plug-in hybrid? Go ahead and take off between $2,500-$7,500 your final price tag. For vehicles that are either hybrid gasoline-electric, diesel, battery-electric, alternative fuel, or fuel cell, the tax breaks are based on a formula determined by vehicle weight, technology, and fuel economy.
Depending on what state you live in, you might also be eligible for utility rebates or state tax incentives for energy-efficient homes, cars, and equipment. Make sure to check the tax code before you make any big decisions.
For more specific information on what home improvements or types of cars qualify, visit the U.S Department of Energy’s website or energystar.gov. If you are planning on buying a car or doing any home renovations in the near future, don’t put it off for too long. A lot of the tax credits are only applicable for renovations, installations, or cars “placed in service” on or before December 31st, 2010.
--Lauren
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