The Tax Incentives to Go Green in 2010

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Although the bad economy and unemployment problems have most Americans watching their budgets closely, you may be surprised to find out how many tax incentives there are for going green in 2010. As you can see, there are plenty of credits and tax breaks for both individuals and businesses that make energy efficient purchases. President Obama has also proposed a new Home Star Program that he is hoping will take effect sometime this year.

Driving Green

Unfortunately many taxpayers are under the impression that all of the tax incentives for buying a hybrid vehicle have expired. However, this is not true. There are plenty of popular vehicles that qualify for the tax credit. A few 2010 Ford Hybrids qualify for a couple of credits, including the Fusion, which can qualify for a credit of up to $3,400. Additionally, electric vehicles such as the Chevy Volt offer the best credits. If you decide to buy an electric vehicle in 2010 then you can claim a credit of up to $7,500.

Conscious Commuting


If you live close enough to your work to be able to ride your bicycle back and forth every day, then you might be eligible for tax-free reimbursement from your employer (if they participate in the program). New legislation allows employers to give employees up to $20 a month for riding a bike to work. Additionally, employers can reimburse up to $230 per month of an employee's public transportation expenses. Be sure to talk to your employer or human resource department to see if they offer conscious commuting reimbursements.

Solar Savings

Homeowners and businesses have been able to take tax credits for installing solar panels for a while now, but many taxpayers are resistant due to the high expense. However, the prices of solar upgrades have gone down drastically over the past few years. Additionally, even less expensive solar products - such as solar powered water heathers - will qualify for a tax credit of up to 30% of the purchase price. This credit can even be claimed against the AMT.


Wind Power

Setting up a windmill for your home or business may seem like a daunting task, but if you have enough land then you could easily have one installed and begin reaping the financial rewards. In addition to claiming a credit of up to 30% of the cost of having a windmill installed, you can even sell excess wind power to your energy company in some instances.

Efficient Appliances

Many of the credits for upgrading to energy efficient appliances that were created last year, are still available in 2010. However, some will be expiring at the end of this year. By purchasing a energy efficient new fridge, washer, or dryer you could qualify for between $50 and $350 in federal tax credits. It is important to note that not all new appliances will qualify, so be sure to check out EnergyStar.gov for a list of qualifying appliances.

Business Breaks

There are several tax advantages for a business to go green in 2010. Although there are dozens of federal incentives, the most popular credits are for installing solar panels, and making energy efficient upgrades. Businesses who make upgrades or offer green services can also choose to apply for Federal grants, instead of claiming a credit.

Creating Efficiency

Businesses commonly assume that they can only get a credit for making upgrades to their own office or place of business. However, there are also credits and deductions available for companies that help their customers go green. For example, construction businesses can take a deduction of up to $2,000 for building a qualifying, energy efficient building.

State Tax Breaks

Dozens of State tax agencies offer their own tax deductions and credits for going green in 2010. For example Nevada will reduce your property taxes significantly if you make major energy efficient upgrades to your home. To find out if your State or local government agency offers any green taxes you should check with a tax professional, or the tax department directly.

The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.

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