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Video: What Are Energy Tax Credits

Updated for Tax Year 2015


OVERVIEW

If you purchased an electric car or made eco-friendly improvements to your home this year, you may be eligible to reduce the amount of tax you owe by claiming one of the energy tax credits.


Hi, I’m Victoria from TurboTax with some helpful tips on how you can reduce your tax bill and help save the environment.

Did you make eco-friendly improvements to your home this year, or purchase an electric car? If so, you may be eligible to reduce the amount of tax you owe by claiming one of the energy tax credits.

If you install alternative energy equipment in your home such as solar panels and geothermal heat pumps, you may qualify for an additional credit equal to 30% of your total cost, but keep in mind this 30% credit currently last only through the end of 2019. After that, the percentage steps down each year and then stops at the end of 2021.

Purchasing an electric car may also reduce your tax bill. Depending on the car's price you can receive a credit worth anywhere between $2,500 and $7,500.

If you qualify for any of these energy tax credits, be sure to check with your state for similar benefits.

For more tips and information to help you get your taxes done smarter, visit TurboTax.com.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


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