Energy credits for automobiles and more!

Last year's energy bill provides a wide array of tax incentives to encourage individuals and businesses to become more energy-efficient. One is a tax credit, which offsets taxes dollar for dollar, for gas-electric hybrid, diesel and other alternative-fuel vehicles placed into service starting Jan. 1. The credit varies by vehicle and depends on its weight, technology and fuel efficiency compared to a base-year model. The Internal Revenue Service has not announced credits for particular models, but the hybrid credit could range from $250 to $3,400. To keep pace, the IRS has expanded the list of vehicles it considers "qualified" to receive the Alternative Motor Vehicle Credit. See the websites below for up-to-date information.

Consumers can claim tax credits for the purchase of home insulation and certain types of windows, electric heat-pump water heaters, high-efficiency furnaces and central air conditioning systems and solar systems (excluding those for swimming pools). See our more detailed message about  these  credits.

For additional information go to:
www.EnergyTaxIncentives.org and www.IRS.gov/NewsRoom