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Tax Incentives for Going Green

According to Ronnie Kweller of the Alliance to Save Energy, in 2008 the average U.S. household will spend $6,300 to power its home and cars. Now, thanks to some tax credits, you can recoup some of that cash.

Car

If you drive a hybrid or alternative-fuel model, you‘re due for a tax credit from the federal government. How much depends on your car and its features. The tax break is reserved for a model‘s first 60,000 purchasers, so you may want to check if your vehicle‘s credit still applies. For a full list of cars, visit irs.gov.

Some states may also give you a tax break for buying an alternative fuel or hybrid vehicle. For info about your state, visit eere.energy.gov.

Home

While the home improvements tax credit has expired, you can still get one for solar upgrades, including solar water heaters and photovoltaic roof panels. Through December 31 2008, you will be reimbursed for 30% of the cost of your system, up to $2,000.

You can receive state-level tax breaks as well. For the most up-to-date information on state refunds, visit dsireusa.org.


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