Video: Federal Tax Incentives: The Wind Power Tax Credit
Hello, I'm Jeremy from TurboTax with important news on how you can qualify for the wind power tax credit this year.
Have you ever driven down the highway and seen hundreds of large fan-like structures spinning in the breeze? These wind turbines are generating electricity without polluting the environment.
Smaller versions of these wind turbines are available that can generate electricity for your home. The federal government encourages you to purchase and install these wind turbines by giving you a tax credit to offset some of the expenses.
The wind power tax credit covers 30% of the cost to purchase and install the turbines at your main home plus one other.
- If you plan on taking advantage of the credit, you must install the turbines by 2016.
- Because there is no maximum credits you can claim, your tax savings are likely to be substantial.
However, because your tax reduction can be significant, be sure to keep every document that proves your cost. The last thing you want is to spend all that money and to lose the credit because you can't prove it to the IRS.
Anyone who claims a credit must file Form 5695. If your credit is larger than the amount of tax you owe, you can use the excess in the future tax year, but no later than 2016.
For more tax tips and guidance, visit TurboTax.com.