Our client Dr. Jim is all about being green.? Not only is he doing his part to save our planet, but Dr. Jim is also saving plenty of taxes while he’s at it.
Three years ago, Dr. Jim purchased a Tesla.? Just as important as saving the environment with his Tesla, Dr. Jim also saved himself $7,500 in federal income taxes the year he purchased that car.? If you purchase an electric car, make sure to complete the?Form 8936, Qualified Pug-in Electric Drive Motor Vehicle Credit?to claim this valuable tax credit as part of your federal tax filing.
Electric Vehicle Charging Station
What would the owner of a Tesla need next?? How about an efficient way to recharge his car in the comfort of his own home of course?
The year after purchasing his Tesla, installing a charging station in his garage was next on Dr’ Jim’s agenda.? As an incentive to invest in one of these electric vehicle charging stations, the federal government offered a?tax credit of up to $1,000, and Dr. Jim took advantage of this tax break on his 2012 federal income tax return.
To claim this credit, you’ll need to complete a?Form 8911, Alternative Fuel Vehicle Refueling Property Credit.? Please note that this tax break was set to expire at the end of 2013, and was then extended through December 31, 2014.? Who knows if it will be extended again?
Now that Dr. Jim had his charging station filling up his Tesla every night, he saw his electric bills skyrocket.? So Dr. Jim decided that the best way around watching his electric bill jump was to produce his own electricity using Solar Panels.? And the federal government was nice enough to chip in 30% of the cost of these solar panels thanks to the Residential Energy Efficient Property Credit.
Anyone who installs systems to harness solar, wind, or geothermal power should file the?Form 5695, Residential Energy Credits?to get back 30 cents for every dollar spent.
If you are thinking about following in Dr. Jim’s green footsteps, you can read the most up to date rules about these tax breaks at?www.irs.gov?or www.energystar.gov.
Forms to Know:
Here are the forms Dr. Jim filed to save thousands of dollars in federal income taxes through various tax credits available for all green Americans: