TAX NEWS - June 2010

Energy Star tax credit allows homeowners save on taxes and energy

Residential vertical wind turbines and solar panels for the home

As part of the American Recovery and Reinvestment act, many homeowners are taking advantage of the Energy Star tax credit that is available. This tax credit can really add up to tremendous savings.

As part of the energy star tax credit, homeowners can enjoy a 30% tax credit on select solar panels and residential wind turbines. By purchasing and installing an energy production system in your home, you can really benefit from the long term savings in addition to a reduction in the amount that you are required to pay in taxes.

When deciding whether to install a solar energy system or a small wind turbine, there are a few factors that you may want to consider. The main consideration that could be a deciding factor is the tax credit being offered. A tax credit is a direct reduction of your tax bill. Unlike a tax deduction, this directly reduces your tax amount dollar for dollar. In addition to the tax savings, calculate how much energy you are going to produce each year. The energy savings can often be several hundreds of dollars, depending on the type of system that you have installed. Each individual system is capable of producing different amounts of energy per day.

One other consideration is the resale value of your home. With a new energy system installed, your home value can increase substantially.