Taxes and Treehugging

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April 15th is still two months away, but tax time is now upon us — made obvious by the radio ads and tv commercials reminding the public that it’s time to pay Uncle Sam. The good news is that if you have made some greener decisions in the past year, you may be able get some breaks on your federal and state taxes for your eco-efforts.

Hybrid owners are usually aware of the tax breaks they get from the purchase of their vehicles. The IRS web site has a list of the Qualified Hybrid Vehicles and how much of a tax credit is offered. You may notice that Toyota and Lexus hybrids have become so popular that if you purchased one after October 1, 2007, you won’t get a credit. Even though there may not be a credit for these specific vehicles, owners are still doing their part in helping the environment, and are spending less money on gas.

Regarding your home, the Energy Star web site has a chart that details what energy-saving home improvements qualify for tax credits. Installing solar panels is a specific example of a home improvement that can make a big impact on your taxes.

To see the full run-down of the eco-incentives offered by the federal government and your specific state, check the U.S. Department of Energy list of incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.

In addition to green decisions you’ve made this past year regarding your car and your home, don’t forget that donations to non-profit groups are also tax-deductible.

As you pay your taxes this year, and begin your file folder for next year, keep in mind that federal tax credits may change after this year. Congress will make decisions soon about extending these credits, so make your voice heard, and contact your representatives today.


The information in this article was compiled from this article from Yahoo! Green.

Posted in Living Green by Rhaya on February 11, 2008 | Permalink | No Comments

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