Now that everyone has received their W2s, people in the Bay Area will be preparing their 2013 taxes. However, many will be disappointed to learn that they’re not getting back as much as they expected. To avoid this next year, make it a personal goal to go green in 2014. Making the pledge to be more environmentally conscious will help the earth, but also make you eligible for tax credits that will help your wallet.
Here are some of the credits that you could qualify for by going green:
Plug-in Electric Vehicle Credit – By purchasing a plug-in electric car, you may qualify for a tax credit between $2,500 and $7,500. This credit is based on how many vehicles a manufacturer has sold; once they’ve hit the 200,000 vehicle mark, the tax credit is no longer available, so be sure to find out how many cars were sold prior to making the purchase. Remember, though, that an electric vehicle is a smart investment even without the tax credit. It not only helps keep CO2s out of the atmosphere, it also cuts your gas bills completely, which can only help your finances.
Residential Energy Credit – By making some updates to your home, you may also be entitled to a tax credit in 2014. Be sure to make energy efficient improvements, such as exterior windows, heating and air conditioning systems, and/or adding insulation to keep warmth in. The tax credit is roughly 30% of the cost of qualifying improvements. Making these changes will not only get you a tax credit, but also reduce your heating and cooling bills.
Business or Residential Solar Equipment – Californians are very lucky because they are now entitled to receive tax credits for installing various types of solar equipment to their homes and businesses. This credit will help you or your company to counter the costs of getting the installations in the first place and then pay off in the long run as heating and cooling becomes virtually cost free. In fact, if your building puts more power back into the system than it uses, you’ll get energy credits that can cover you during, say, a really hot summer or cold winter when you use extra power. The government is working to support businesses and individuals that take steps to protect our environment. You can take advantage by hiring solar companies in the Bay Area to install units.
Who says that doing the right thing never gets you anywhere? When you do your part to save the earth, you can anticipate a better tax return, as well as a lot of other savings.