What Are Energy Tax Credits? – TurboTax Tax Tip Video

0 Comment

Hi, I’m Jeremy from TurboTax with important news on how you
can reduce your tax bill by saving the environment. Did you purchase an electric car or make
eco-friendly improvements to your home this year? If so, you may be eligible to reduce the amount of tax you owe by claiming one of the energy tax credits. You can deduct up to $1,500 off your taxes when you increase the energy efficiency of your primary home by installing new air conditioning units, increasing the insulation in your walls, or by adding new windows, skylights or doors. If the manufacturer claims the equipment will reduce energy consumption or if the product has the Energy Star label, that
is all you need to qualify for the credit If you install more expensive equipment such as solar panels and geothermal heat pumps, you will qualify for an additional credit equal to 30% of your total cost. Purchasing an electric car will reduce your tax bill. Depending on the car’s price you can receive a credit worth anywhere between $2,500 and $7,500. It is also possible to convert your gas guzzler into
an electric car by purchasing a conversation kit. Save the receipts when you buy the kit as the tax
credit is equal to 10% of the cost. If you qualify for any of these energy tax credits, be sure to check with your state for similar benefits. For more information on this and other tax topics, please visit

Tags: , , , , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *