TAX NEWS - 2010

Green Tax Credits: Oklahoma taxpayers can benefit from green tax breaks

Tax credits for energy-efficient home improvements, buying a hybrid and others are still available in 2010.

Uncle Sam, it seems, has quite a few green tax credits up his sleeve.

I recently spent some time answering a quiz that asks: "Know your green tax breaks?" Turns out, I do (a perfect score and an ego boost — 20 minutes well spent).
 
But I also learned a few things I'm hoping will benefit readers come April 15.

Not many people are likely to rush out and buy a biomass stove, but they apparently are gaining popularity because of the 30 percent tax credit to offset the purchase price and cost of installation, available through the end of the year.

Home improvements, however, are much more common. Buying and installing new energy-efficient windows and doors, insulation, skylights and certain types of roofing can qualify for tax credits.

Or if you're in the market for a wind turbine to power your home — at a cost of $600-$12,000, according to the quiz — that could earn a tax credit, as well.

There has been much hype about the federal tax credit on hybrid and electric vehicles. If you've ever wondered why some cars qualify and others don't, the quiz explains how the credit phases out as the manufacturer sells 60,000 of each model.

That's why a Toyota Prius no longer qualifies, but some new vehicles will.

And if you forgo the car altogether and ride a bicycle to work, you can claim up to $20 a month.

To claim the credits, first make sure the item you're buying qualifies by checking the Internal Revenue Service website, IRS spokesman David Stell said. Then, save all your receipts.

"Record-keeping is the bottom line with respect to tax credits and tax deductions," he said.

At tax time, there are forms to fill out to claim the credits, such as Form 5695 for the residential energy credits and Form 8910 for alternative motor vehicles.

And the good news is you don't have to itemize deductions to receive a credit.