It’s tax time again and millions all over the country are preparing their documents and records to fill out all the tax paperwork in the hopes of getting money back. If you recently performed some energy related purchase or upgrades, you could be entitled to some pretty good tax credits.
If you purchased a plug-in electric vehicle like a Tesla in 2015, you could be entitled to a tax credit of $2500 to $7500, depending on the capacity of the vehicle’s battery. The minimum credit of $2500 applies if your vehicle’s battery capacity meets or exceeds 4 kilowatt hours, and you’ll get an additional $417 per kilowatt hour above that, up to a maximum of $7500.
If you have installed renewable energy systems on your property for your home, you may also be entitled to tax credits. According to Energy Star.gov, you can claim up to 30% of the installation cost as a tax credit for small wind turbines, solar panels, or geothermal pumps that provide power for your home. This includes both new and existing homes, but does not apply to rentals. Furthermore, you can $500 in tax credits per half kilowatt of power capacity attained through the use of residential fuel cells.
Going green and using renewable energy systems or switching from a gasoline to electric vehicle can really help you on your taxes. Renewable energy is the future, so it certainly helps to get a leg up into the new era of energy production. Take advantage of using renewable energy to power your home with cheap electricity can reduce your energy costs.