Squeezing the Green Out of 2009

It’s that time of year again - the taxman cometh! While it’s too late to squeeze in any more deduction friendly purchases, you still need to be aware of what you can receive tax breaks for as you file for 2009.

The most common theme with the government’s green incentives is the importance of weatherization projects - anything that allows a homeowner to create a more energy-efficient property. Below are a few tax incentives you are eligible for if you made the following purchases or upgrades:

Greening your home
The following types of energy-efficient products may be eligible for a 30 percent tax credit, up to $1,500:

    * Biomass stoves
    * Advanced main air circulating fan
    * Air source heat pump
    * Central air conditioning
    * Gas, propane, or oil hot water boiler
    * Natural gas or propane furnace
    * Oil furnace
    * Home insulation
    * Reflective roofing
    * Non-solar water heaters
    * Energy-efficient windows, doors and skylights
    * Storm windows and doors

These products should have been installed on an existing, primary residence. New construction projects as well as rental property upgrades will not qualify for the tax credit under this plan. Although 2009 has come and gone, these tax credits are valid for projects completed through Dec. 31, 2010.

For specific details about these programs, visit the Federal Tax Credits for Consumer Energy Efficiency site.

Hybrid Purchases
Of course, there are tax credits available for those who purchased hybrid vehicles in 2009. Unfortunately, the most popular hybrid, the Toyota Prius, is not eligible for a tax credit. Tax credits for hybrids are phased out after an automaker has sold 60,000 eligible units. For Toyota and Lexus models, this phase out began on Oct. 1, 2006.

However, there are still three automakers that sell tax credit-eligible hybrid vehicles: Ford, General Motors and Nissan. Due to the popularity of the Ford Escape Hybrid, Ford is already in the tax credit phase-out process. If you purchased an eligible Ford hybrid prior to April 1, 2009, you may be eligible to take the full credit amount. Ford hybrids purchased between April 1, 2009, and Sept. 30, 2009, are eligible for a 50 percent credit and eligible Ford hybrids purchased prior to March 31, 2010 will be eligible for a 25 percent credit
 
Certain hybrid models from General Motors and Nissan are still eligible for the maximum tax credit amount. General Motors models on the list include the popular 2010 Chevrolet Malibu Hybrid ($1,550 tax credit) and the 2010 Silverado Hybrid ($2,200 tax credit). If you’re in the market for an import, the 2010 Nissan Altima hybrid is eligible for a $2,350 tax credit.
 
For more information on hybrid tax credits, view the IRS’ list of eligible model year 2010 hybrids.

These are just a few green tax incentives you may qualify for. There are more available, and it’s best to consult a professional tax accountant for your individual financial needs.