Going green can offer a pretty nice payback at tax time. The IRS, through the federal stimulus package, is offering tax credits to individuals and businesses that make or use energy or energy-efficient products in 2009 and 2010. But you have to spend in 2009 to take the credit against this year's taxes. A homeowner buying energy-efficient windows, doors, water heaters or biomass stoves and those purchasing insulation, metal or reflective asphalt roofs and solar-energy systems can receive credits of 30% of the cost up to $1,500 in total. People purchasing geothermal heat pumps, solar panels and wind generators can get credits of 30% (up to $1,500) for each item through 2016. People buying plug-in hybrid electric cars can get tax credits of between $2,500 and $7,500.
For more information on which products qualify for tax credits, go to energystar.gov
See tax moves to make before the year's end:
Introduction: Tax-Saving Tactics
Capture Stock-Market Losses
Donate — and Deduct!
Gather Receipts — They're Precious
Reach for the Medical Deduction
Prepare to Convert to a Roth IRA