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Deadly Tax Values

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A STUDY OF ECO-FRIENDLY TAX CREDITS IN THE U.S.A.
“Recycle”, “reuse”, “repurpose” are words often spoken as the world grapples with the ever increasing burden daily life is placing on the environment. Everything - from the cars we drive, to the electricity used to power appliances and other conveniences, to the clothes we wear and the foods we consume – affects the environment around us. Natural resources are being depleted and the purity of the air we breathe and the water we drink is being compromised – a result of creativity and progress in an effort to improve our lives. Throughout the past several years, the government has offered tax credits to promote implementation of products aimed at reducing environmental impacts.
One key …show more content…

The qualifying equipment includes depreciable items such as lighting, heating, cooling, ventilation, and hot water systems which decrease the total energy consumed by 50% or more as compared to a similar building. In addition, the building must be certified in compliance by an IRS recognized individual deemed qualified to determine compliance. The IRS allowable credit is $1.80 per square foot of certified building space. The credit is available only to the one who paid for the equipment.
The energy-efficient appliance credit has been available for companies which produce high-efficiency appliances such as dishwashers, washers and refrigerators for home use. In general, this credit applies only to the number of those appliances made in the US during the tax year, which exceeds the average number produced in the previous two years. There is a maximum total of $75 million for this credit. In addition, each appliance type has energy saving requirements which determine the specific allowed credit for that …show more content…

Purchasing a hybrid car which operates on alternative power or one with a diesel engine can provide a tax credit in the range of $250.00 to $3,400.00 depending on the gas savings and total vehicle weight. Furthermore, if two hybrids are bought, two tax credits can be claimed.
Charitable Donations
One of the more common tax credits claimed relates to charitable donations. While it may seem strange to discuss this in a study of eco-friendly tax credits it does involve reuse or a form of recycling. For many years, taxpayers have been donating old clothing, household goods, furniture and sporting equipment to their local non-profit thrift store. If not for these stores, unused items would be disposed of in the trash where it would most likely makes its way to a landfill.
Instead, these donations reap a double benefit for all involved. The individual donor receives a tax benefit on their annual tax filing and the thrift store is able to serve their client base by offering slightly worn or used goods at an affordable price. Guidelines for determining the value of donated goods is often available through various

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