California is one of the most progressive states in the nation in terms of the California energy tax credits that are offered to both residents as well as corporations. California energy credits can include vehicle tax incentives and alternative fuel credits. These, in addition to hiring credits made available to businesses such as the WOTC California credits, can help individuals and businesses meet their tax expenses more easily during the economic downturn the country is facing.
California energy tax credits are available from both the federal and state governments. These California energy credits are broken down into those applied to homeowners and those for businesses. For homeowners who take action to conserve on energy use, they are rewarded with California energy tax credits. Ways in which homeowners qualify for this tax incentive are to add insulation to the home, or energy efficient windows or simply add seals to windows and doors. These are simple actions that yield positive results in terms of California energy tax credits. When energy saving heating systems, ventilation and air-conditioning units are added to the home, you may then qualify for additional California energy credits. Both homeowners as well as corporations can benefit from vehicle tax incentives, which come into play when an energy efficient hybrid vehicle is purchased. Alternative fuel credits may be granted for vehicles that run on a combination of electric motor, gas, hydrogen, ethanol, nitrogen gas or diesel. Corporations can also earn energy credits when they install geothermal heat pumps, photovoltaic systems, small wind generators or solar water heaters to their business sites, as an incentive to use more renewable energy technology. Sales and use tax credits may also be applied when companies buy water or pollution, energy conservation, research and development, or manufacturing and processing equipment.
In addition to energy credits, corporations in California can also earn hiring credits. Federally-based credits, such as WOTC California, can help businesses reap from $2,400 to $4,800 per eligible employee. State-based hiring credits may offer your corporation up to a hefty $13,000 per qualifying employee. These employees must meet certain requirements of belonging to recognized groups, which can include qualified disabled veterans, those who have been recently laid off or threatened with lay off, Native Americans or Pacific Islanders, those who recently qualified for or received food stamps, SSI or temporary assistance for needy families, qualifying ex-felons and certain categories of youth hires.
To learn more about energy credits as well as WOTC California hiring credits, make an appointment to speak with a certified public accountant experienced with these and other types of tax credits.
Wayne Hemrick writes about–california energy tax credits
Helping the Environment May Help Your Tax Bill
The American Recovery and Reinvestment Act provides incentives for taxpayers to purchase energy efficient appliances and upgrades to their homes. The Act increases the energy tax credit for homeowners who make energy efficient improvements to their homes and taxpayers who purchase certain energy efficient equipment or vehicles.
How Much of an Energy Tax Credit Can I Get?
The amount of the energy tax credit depends on what you purchase. The Act allows for a credit on 30% of the purchase price of all energy efficient improvements to your residence up to $1500. This applies to improvements like adding insulation, replacing windows and installing energy-efficient heating or air conditioning systems. Additionally, certain alternative energy systems, like solar hot water heaters and wind turbines, are eligible for a 30% energy tax credit for the cost of the equipment with no limit.
The Act also creates a special energy tax credit for certain plug-in, electric low-speed vehicles and two- or three-wheeled vehicles. The credit for these vehicles is 10% of the purchase price, up to $2500. Certain vehicle conversion kits also qualify. These vehicles must have been purchased after Feb. 17, 2009. The more credits you qualify for, the greater your chances of receiving a refund on your tax return.
How Do I Know if My Purchase Qualifies for the Energy Tax Credit?
For items purchased before June 1, 2009, you generally can rely on the manufacturers’ certifications and Energy Star labels that were available at the time for those products. Not all Energy Star products qualify for an energy tax credit, though. Visit the U.S. Department of Energy’s EnergyStar Web site to check on your specific products. For alternative energy systems, check the IRS website for qualification guidelines.
How Do I Claim My Energy Tax Credit?
To claim your energy tax credit, you must file IRS Form 5695 with your personal income taxes. Using an online tax preparation site, like www.efiletaxreturns.com, will help you tax as many deductions and credits as are allowable. It will also help you take whatever multiple credits you may qualify for when claiming electric or hybrid vehicles.
What Other Credits are Available for Energy-Efficiency?
Many states also have energy tax credit or incentive programs for renewable energy and energy efficiency. The Database of State Incentives for Renewables and Efficiency (DSIRE) website allows you to select your state and see what other credits may be available for you on your state return. For example, California has a list of building incentives, local rebate programs and property tax incentives that may apply depending on your city or county. Check the website to see what energy tax credits or incentives you qualify for.
Karin Velez is a freelance writer and editor whose expertise covers a wide range of topics, including finance, DIY and gardening. She and her husband live on their organic family farm in Peculiar, Missouri. More about Karin can be found at www.karinvelez.info.
If you’re a homeowner and planning to have some home improvements projects in your house to make it more energy efficient, now is the perfect time to do so! Why? Because there are federal energy tax credits available for consumers who make energy-conscious purchases and home improvements.
Energy tax credits are offered at 30% of the cost up to $1,500 in 2009 and 2010 for the following:
• Windows and doors (exterior windows, skylights, storm windows, exterior doors, storm doors)
• Roofing (metal roofs and asphalt roofs)
• Insulation
• HVAC (heating and air – all types)
• Water heaters
These tax credits are for existing homes only.
Other homeowner energy tax credits that are available at 30% of the cost with no upper limit are:
• Geothermal heat pumps
• Solar panels
• Solar water heaters
• Small wind energy systems
• Fuel cells
The above tax credits on the other hand, are offered for both existing homes and those under construction, until 2016.
Taking advantage of these energy tax credits is so much easier than availing of home improvement grants. For one home improvement grants are not readily accessible to the average homeowner. While free government home improvement grants do exist, there is limited information for these so you’d really need to be patient in your search. And even when you find one where you may qualify for, the application process is lengthy and tedious, and the results depend largely on whether your city or state has the available funding.
But with the federal energy tax credits, the savings you get are as good as a done deal – no applications or proposals needed!
So if you have some home improvement plans in mind anyway, why not go green? Your overall savings is two-fold: you get your energy tax credits, and you save on electricity and heating costs by making your home energy efficient.
If you are looking for a handyman in Edina, MN, be sure to visit the Edina handyman directory to find a contractor who can help you take advantage of these tax credits!
