Energy Tax Incentives Act of 2005 - Dollars to you?
Smartmoney.com: Tax Matters: What the New Energy Bill Means for You describes some generous new tax incentives for consumers.
"The best part: They all come in the form of tax credits, the very best kind of tax break. A credit lowers your federal income tax bill dollar for dollar. In contrast, a deduction lowers only the amount on which you're taxed, so your bill is reduced only by a percentage of the write-off. "
Some highlights from the Article:
Four New Tax Credits for Energy-Efficient Vehicles
Credit No. 1 for Hybrid Vehicles: Up to a maximum credit of $3,400.
Credit No. 2 for Lean-Burn Technology Vehicles: "Qualified "lean burn" vehicles are passenger cars and trucks with internal combustion engines that use a direct injection of a fuel mix with a higher-than-normal percentage of air." The credits are still unknown.
Credit No. 3 for Fuel-Cell Vehicles: "Qualified fuel-cell vehicles include, for example, cars that run on hydrogen cells." The credit amount can be as high as $12,000.
Credit No. 4 for Alternative-Fuel Vehicles: "Qualified alternative-fuel vehicles include cars and trucks that run solely on compressed or liquefied natural gas, liquefied petroleum gas, hydrogen, or any liquid that is at least 85% methanol...The maximum credit for garden-variety autos and light trucks is $4,000."
New Tax Credit for Residential Energy Improvements
"This personal tax credit has a $500 lifetime limit, but it's broad enough that many folks will benefit even though the numbers won't be very big."
New Tax Credit for Other Residential Energy Equipment
"You can also collect a completely separate personal tax credit equal to 30% of the cost of:
* Qualified solar water-heating equipment (maximum credit of $2,000).
* Qualified electricity generating solar photo-voltaic property (maximum credit of $2,000).
* Qualified fuel-cell property (maximum credit of $500 for each 0.5 kilowatt of capacity)."