Renewable Energy Tax Credits and Exemptions
Happy Earth Day everyone! As we work towards taking better care of our planet, we are often reminded that, while using renewable energy may be cost-effective in the long run, the up-front costs can run high. With this in mind, ELM3 would like to remind you of a few clean energy tax credits and exemptions Georgia residents can use during the 2015 tax year. If you’re interested in reviewing tax credits and exemptions in other states, check out this helpful search engine.
Residential Renewable Energy Tax Credit
This is a federal tax credit that can be used towards 30 percent of qualified expenditures related to installing energy-efficient technologies in your home. These technologies include solar water heaters, solar photovoltaics, geothermal heat pumps, wind energy systems, fuel cells using non-renewable fuels, and fuel cells using renewable fuels. Additionally, qualifying expenditures include the cost of labor for on-site installation, the cost of assembly or installation, and the cost of wiring or piping the house to connect the technology to other home systems. This credit can be applied to any purchases prior to December 31, 2016. Depending on the technology, there may be a maximum on the amount that can be used towards a credit and the technology may need to be installed in the taxpayers principal residence in order to qualify.
Sales Tax Exemption for Energy Efficient Products
Between October 2 and 4, Georgia residents can purchase Energy Star products that cost $1500 or less per product and be exempt from paying any state or local sales or use taxes. The exemption only qualifies for non-commercial and home products and can be used to purchase Energy Star dishwashers, clothes washers, air conditioners, ceiling fans, compact fluorescent light bulbs, dehumidifiers, programmable thermostats, refrigerators, doors, and windows.
Alternative Fuel Vehicle Tax Credits
Georgia residents qualify for a tax credit that can be used towards the cost of purchasing or leasing low-emission or zero emission vehicles as long as the vehicle relies entirely on renewable energy. The tax credit is equal to 10 percent of the cost of a low-emission vehicle or $2500, whichever is less, or 20 percent of the cost of a zero emission vehicle or $5000, whichever is less. Taxpayers can also credit 10 percent of the cost of a vehicle conversion kit or $2500, whichever is lower, if the converted vehicle relies solely on alternative fuels. Nationally, taxpayers can also apply for a $7,500 federal income tax credit towards the purchase of electric vehicles.
If you have any questions about these credits or others, please don’t hesitate to contact us! Remember, even if you are not looking to buy new appliances, there are a number of ways to cut spending on utilities and reduce energy consumption in the process.Bankrate and This Old House offer a few good tips that could give both your bank account and the environment a break.
