How to Apply for Consumer Energy Tax Reductions

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Consumers who purchase qualified fuel-efficient vehicles and energy-efficient appliances may be eligible for a tax credit. A tax credit reduces your taxes dollar-for-dollar as compared to a deduction that only reduces your taxes by a percentage.

Additional to federal tax credits, some consumers may also be eligible for state rebates and state tax reductions for energy-efficient homes, appliances and vehicles. See the end of this article on related link for  “Database of State Incentives” for additional information.

Energy Efficient Homes:  Anyone who purchases and installs specific products such as windows, doors, heating, air conditioning, etc can receive a tax credit up to 30% of the cost with a maximum cap of $1,500. The energy improvement must have been installed starting January 1, 2009 to December 31, 2010. See related Federal Tax Credits for Energy Efficiency link at end of this article for additional information.

Renewable Energy Tax Credit: Any homeowner who installs a solar energy system, wind turbine system, geothermal system, fuel cells, etc can receive a 30% tax credit for any system placed in service before December 31, 2016.

Automobile Tax Credit: Anyone who buys or lease a hybrid car/truck (gas/electric) starting January 1, 2006 through December 31, 2010 can be eligible for a tax credit. The amount of the credit will depend on the fuel economy and weight of the vehicle. Other conditions also apply. See related link for Summary of the Credit for Qualified Hybrid Vehicles at the end of this article.

Electric Vehicles: Anyone who purchases a qualified electric plug-in vehicle after December 31, 2009 will be eligible for a minimum tax credit of $2,500 and a maximum of $7,500, depending on the capacity of the battery. Conditions:  vehicle must be newly purchased, gross weight of less than 14,000 pounds, and a battery with a rating of at least 4 kilowatt hours. See related links below for additional information.

2009-54: Qualified Plug-in Electric Vehicle Credit

2009-58: Qualified Plug-In Electric Vehicle Credit Under Section 30

Hybrid Conversion Kits: A credit equal to 10% of the purchase price of a hybrid conversion kit is allowed to anyone who converts an automobile to a plug-in electric drive motor vehicle and starts using it after Feb. 17, 2009. See related link on Alternative Motor Vehicle Credits for additional information.

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