It’s almost that time again. The tax man cometh, at least for those of us that happen to have a job in the current depressed economy. But here’s the nasty little secret- even though the current ruling class in Washington delights in saying wealthy people should lose their tax cut, the fact is that the majority of the US population already pay no taxes at all after all is said and done.
That’s right, most of us get more bang for the buck, and those who plan properly get better tax returns. One way to get more of your money back and save money on utility bills is to take advantage of the federal energy tax credit.
Act quickly if you want to get in on the action this year. The deadline for the 2010 credit is December 31, 2010. Note that it is a misconception that all Energy Star appliances and products qualify. Not true. But here are some energy saving marvels for which you can get a tax credit of up to 30% of cost up to $1,500 on some, unlimited on others.
- Biomass stoves
. These heaters are very green, renewable, and sustainable because they burn materials that otherwise would have been scrap. A good example is the wood pellet stove.
- HVAC equipment. Ever wonder what that stands for? Heating, Ventilation, and Air Conditioning! This is prime time for a new central AC because the vendors aren’t particularly busy with them now and the chances are good that they will cut you a deal. Air source heat pumps also qualify.
- Insulation. This is one of your best return on investment products. I took advantage of this a few years ago and I also installed radiant barrier foil in my attic. I know for a fact that the Energy Q brand is classified as an insulating material. I keep a spreadsheet of the kilowatt hours my home consumes, so I can say that the foil paid for itself during the first year.
- Roofs. Both asphalt and metal roofing companies have a variety of qualifying products. Metal roofs cost more than traditional asphalt composition shingle roofs but last longer. And in some cases, your homeowners insurance policy cost may be reduced because of fire and hail resistance.
- Non-solar water heaters. Water heaters eat up a lot of juice, and as they age, they lose efficiency due to mineral build-up internally. To this day, I don’t see why solar water heaters aren’t included.
- Geothermal heat pumps. These are quite expensive to install but will save loads of cash in the long run.
- Residential wind turbines. In a high wind area, turbines can ease the burden on your wallet by reducing the amount of electricity that you purchase off the grid.
- Solar panels. Otherwise known as photovoltaic systems, these panels are being championed by the Obama administration as an “alternative energy source.” To be honest, the traditional panels are more hype than substance, but a new thin-film solar technology that’s coming on to the market is much more efficient and less expensive.
There will be more tax credits in coming years, but now is the time to take advantage of the products mentioned above. And while we’re talking cash, don’t forget to take care of others this holiday season. My personal favorite charity is Feed the Children. It’s good karma. Just saying.
