Tax Credit Consulting: Energy Star Tax Credit Hayden ID
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Tax Credit Consulting: Energy Star Tax Credit
Energy Star Tax Credit
It must be noted that not all Energy Star Homes are eligible for a tax credit. The Energy Star Tax Credit actually refers to a number of credits resulting from the Energy Policy Act of 2005.
Energy Star Tax Credit
The Energy Policy Act of 2005 established several tax credits for environmentally sound products. Energy Star is a joint program of the United States Environmental Protection Agency and the United States Department of Energy. Basically, the Energy Star Program is a rated service that determines the energy efficiency and environmental soundness of various products used in a home or business. Items that meet the Energy Star criteria are clearly labeled and rated for the benefit of consumers.
The Energy Policy Act that established a credit of up to $500 a year is closely related to the Energy Star Program in that many Energy Star products would qualify for the credit. The credit is for products used in home improvement and covers such items as energy efficient windows and improved insulation. The use of Energy Star labeled appliances would usually qualify under this credit. This has led to the use of the term Energy Star Tax Credit.
The Energy Policy Act goes beyond just this homeowner improvement credit. It also covers such diverse items as hybrid automobiles and solar heating systems. The best place to find information on the tax credits available would be the IRS information on the benefits of the Energy Policy Act rather than under the Energy Star information. The tax credits are currently available for the tax years of 2006 and 2007.
The whole idea of tax credits for environmentally sound and energy efficient products is an example of the use of the tax codes to encourage activities that are good for the society as a whole. In this case, they are encouraging activities that are good for the tax payer on a more personal basis. Most Energy Star products will produce a great savings in the cost of energy for the ind...