Save Energy And Money On Taxes At The Same Time

| Total Words: 359

Save Energy And Money On Taxes At The Same Time

In an effort to help promote alternative energy and energy conservation, the federal government is offering some tax credits to people who buy certain products like insulated windows, energy-efficient heat pumps and hybrid cars.

In August of 2005 the federal government passed the Energy Policy Act, and the resulting tax credits went into effect January 1 of 2006. Not only are energy-efficient products rewarded, but certain building techniques and materials are too.

So you save money on energy bills and pay less to Uncle Sam too. Sounds like a win-win.

“By reducing overall energy demand one family or business at a time,” said U.S. Energy Secretary Samuel Bodman, “we are also increasing America’s energy security.” The program has the additional bonus of being environmentally conscious.

So how exactly does the program work? It provides tax credits for your federal return. Say you bought a new hybrid car or had your windows replaced with insulated ones. When April 15 rolls around, you note the purchase on your taxes, take the credit and it reduces the amount of tax you...

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