What better way to celebrate Fall than by saving some money? (Okay, jumping in a pile of leaves is just as great.) With the temperature beginning to drop, it’s time to start looking around the house for ways to save on energy costs. Follow these savings tips below to reconfigure your home for energy savings in the colder months, as well as take advantage of some great tax credits and deductions for energy-efficient purchases.
Some of the best ways to save money as it gets cooler are also completely free.
Let’s face it, sometimes we have to repair or upgrade our homes. And with those somewhat intimidating words comes one thing: spending money. But when it comes to creating a more energy-efficient home, you could save on your energy bill and taxes.
The Residential Energy Efficient Property Tax Credit offers you some major tax breaks when it comes to purchasing qualifying energy-efficient appliances. The IRS is offering a credit on your tax return for 30% of the cost of alternative energy purchases – Wind Energy from Wind Turbines, Solar Energy from Solar Panel Systems, and Solar Hot Water Heaters.
Not only will these alternative resources save you money each month, but they’ll reduce the amount of taxes you owe, helping to turn your tax bill into a tax refund. What makes this credit even better is that there is no limit on the amount of available credit. Your credit is 30% of your qualified purchase.
And get this, if your credit is greater than the amount of taxes you owe during this current year, the government will let you roll over the remainder of your savings to the next tax year. Uncle Sam, what a guy!
Don’t worry about knowing the tax laws. TurboTax will ask you simple questions and give you the tax deductions and credits you are eligible for.