A second credit applies if you purchase equipment that will help you harness alternative energy at home. For instance, if you buy a geothermal heat pump, a solar water heater, or a bite-sized wind turbine for your home, you’ll generate some positive energy at tax time too. The credit, which offsets your tax bill, is 30% of the cost of your new stuff. You can include installation, and unlike the residential energy property credit, there is no limit on how much credit you can claim.
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Both credits apply to purchases made this year, so head to your local hardware store (or Lowe’s (Stock Quote: LOW) or Home Depot (Stock Quote: HD)) to check out your options. You just might save some green by going green.
Interested in other tax advice? Be sure to check out the complete archive of Daily Deductions.
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Earth Day: 5 Cheap Ways to Go Green
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