TurboTax / Tax Calculators & Tips / All Tax Guides / Home Ownership / Video: What Are Energy Tax Credits

Video: What Are Energy Tax Credits

Updated for Tax Year 2011


OVERVIEW

The content of this video applies only to taxes prepared for 2010. It is included here for reference only.

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 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 conversion 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.

Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99$34.99*
Start for Free

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.


Security is built into everything we do
Here's how
* Important Offer Details and Disclosures
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/A + Free State offer only available with TurboTax Federal Free Edition; Offer may change or end at any time without notice. Actual prices are determined at the time of print or efile and are subject to change without notice. Savings and price comparisons based on anticipated price increase expected 3/18/16. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal efile of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected 3/18/16. Prices subject to change without notice.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice service is available via phone for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Not available for TurboTax Business customers.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2014 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • Benefit Assist: After you file, TurboTax automatically shows you a full list of government benefits you may qualify for, like Food Stamps or reduced phone & utilities. Plus, we help you apply, saving you time and making it easier than ever to get more money! Estimate based on calculation of Benefit Assist users from tax year 2013 and published reports of average benefit and savings amounts from federal and state programs. Benefit Assist users who received one or more federal or state benefits received on average $576 (based on survey March-June 2015). Actual amounts and qualifications based on your individual situation; some individuals will not qualify. Feature may not be available for all customers.