save money on tax by going green

Nowadays, going green is in vogue. Do you know that going green would not only save the environment but also it can save your precious dollars? Yes, that’s right! Now, you can get attractive tax breaks for going green - as individuals or as a business owner. As long as you are investing in energy-efficient products, you can save money on both your utility bills and your tax return.

The list below shows how you can save your hard-earned dollars on taxes by going green:

1. Using renewable energy resources for renovations

You will qualify for a 30% tax credit for using renewable energy resources like solar panels, wind turbines, and geothermal heating pumps for your home or business. For instance, if you install a solar electric system, you can save money on both its purchase and installation. This way, you’d save money on both energy bills and taxes. This tax credit would remain available through December 2016.

2. Using electric vehicles

Though tax credits are not available for hybrid cars anymore, you can still save money on taxes for using qualified fuel cell motor vehicles also known as electric vehicles. Depending on a vehicle’s battery capacity tax credits range from $2,500 to $7,500. To know whether or not your car is eligible for a tax credit visit the DOE’s Fuel Economy website and search by make, model, and year.

Read more: Tax refund calendar 2016: Can you expect a quick tax refund?

3. Hiring people for ecological restoration jobs

Jarid Manos of Great Plains Restoration Council said that “Great Plains Restoration Council wants to highlight a little-known innovation for tax benefits and going green – hiring people to do ecosystem restoration work.”

For ecosystem restoration jobs you can hire U.S. veterans as they’re expert in working under challenging climates and situations. The Vow to Hire Heroes Act that was signed into law in November 2011, gives tax credits of up to $5,600 for each veteran appointed and up to $9,600 if the veteran was injured.

4. Recycle things

You won’t find any federal tax incentive for recycling things. But, there are states that offer tax breaks to businesses that recycle goods, purchase recycling equipment, or use recycled materials.

5. Donating old electronic items to charity

You must be aware of the tax benefits of donating old clothes to charity. But, do you know you can get tax breaks on old electronic items for donating them to the charitable organizations? Yes, that’s true! If you no longer need your old cell phone, hard drive, and TV, you can donate these items to a charity. These donations are viewed as tax deductible by the IRS, only if these are donated to a qualified charitable or non-profit organization.

6. Using Energy Star qualified products

The Energy Star program of the U.S. Environmental Protection Agency and the U.S. Department of Energy help save the environment and money on taxes by going green. Energy Star qualified products use 10 to 15 percent less energy or water and are also eligible for tax credits through 2016 for some energy programs. Products that are not covered by tax credits can still save you money by reducing your energy bill.

So, before filing taxes for the financial year 2016-2017, find out if you’re eligible for tax incentives for going green.

See also: Make a green oath and save money

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