Americans are often eager to take advantage of federal tax credits during filing season. Federal tax credits for energy efficiency are becoming an increasingly popular benefit that consumers are utilizing to reduce their tax bills and save money.
States have been awarded $300 million in federal stimulus funds as an incentive to consumers who are eager to upgrade their appliances to more energy-efficient models, the Salt Lake Tribune reports. Certain upgrades, such as enhanced attic insulation and new heating and cooling systems may allow taxpayers to receive a government credit, which reduce tax bills on a dollar-for-dollar basis, reports the newspaper.
Taxpayers interested in the credits should ensure that any energy-efficient upgrades fall under federal guidelines. Taxpayers should also keep all receipts in one central location in order to provide the necessary documentation during tax preparation, the newspaper reports.
Consumers who take part in certain energy-efficient home improvements can receive a tax credit up to 30 percent off for costs up to $1,500 through December 31, 2010, according to the U.S. Department of Energy.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.