10 Vehicles that Still Qualify for a Federal Tax Credit

Unfortunately, many of the federal tax credits for popular hybrids – such as the Toyota Prius – expired quite a while ago. However, although a handful of vehicles no longer qualify for the tax incentives, there are plenty of energy efficient automobiles that can still result in a decent tax credit.

To assist the readers of my blog looking to invest in a hybrid vehicle, please enjoy the following list of 10 vehicles that are still eligible for the IRS credit. I have provided information as to the amount of the credit and basic information on each automobile.

1. 2010 BMW Active Hybrid X6 – Credit: $1,500

The 2010 Active Hybrid X6 BMW boasts superb fuel efficiency while maintaining the speed and class of a regular BMW. Although the vehicle does not have the best fuel efficiency rating or the lowest price tag, the vehicle is being marketed towards consumers who want an efficient luxury vehicle that can go from 0 to 60 in less than 6 seconds. The BMW Active is listed at $88,900 and qualifies for a federal tax incentive of $1,550.

2. 2010 Audi A3 TDI – Credit: $1,300

The 2010 Audi A3 TDI is a clean diesel SUV with the same capabilities as any typical sports utility vehicle; it also seats seven. Since the automobile uses diesel fuel, drivers can claim a tax credit for this car of up to $1,300. The Audi A3 TDI is one of the first of its kind, and was even awarded the 2010 Green Car of the Year award from Green Car Journal.

3. Chevy Volt – Credit: $7,500

Although the Chevy Volt has not hit sales floors yet, there is already a lot of anticipation of its upcoming release. The vehicle has an electric motor – powered by lithium ion batteries – and the car can travel 40 miles on a single charge. Although an official price has not been announced, experts predict it will be priced around $40,000, which would correlate with a tax credit of $7,500.

4. Tesla Roadster – Credit: $7,500

The most significant federal tax credits are available for plug-in electric vehicles, such as the Tesla Roadster. The credit amount may not seem as significant compared to the Roadster’s steep $109,000 price tag. However, many states including California are offering additional incentives for taxpayers who buy or lease a Tesla Roadster.

5. 2010 Mercedes Benz ML450 Hybrid – Credit: $2,200

The 2010 Mercedes Benz ML450 is another hybrid offering drivers a luxury car that can be driven on only electricity, only gasoline, or an efficient combination of the two. The small scale SUV gets around 24 miles per gallon and qualifies for a $2,200 federal tax credit.

6. 2011 Nissan Leaf – Credit: $7,500

The 2011 Nissan leaf is among the most affordable electric vehicles. It has not hit the market yet, but according to reports it can travel 100 miles on a $3.00 charge of electricity. The leaf will arrive at Nissan showrooms across the country this December. The MSRP should be around $32,780 before the credit, and the vehicle will also qualify for a $5,000 Californian clean vehicle rebate.

7. 2010 Chevrolet Tahoe Hybrid – Credit: $2,200

The Chevy Tahoe Hybrid has an MSRP of $51,185, however if you purchase one before December 31^st then it will qualify for a $2,200 federal credit. The vehicle averages 21 miles per gallon. Although the Tahoe is not the most efficient vehicle on my list, considering its size the mileage is still impressive.

8. 2010 GMC Sierra Hybrid – Credit: $2,200

If you need to drive a truck that can haul items, but are looking for a way to cut your fuel expenses, then you should consider the 2010 GMC Sierra Hybrid. The truck is best for city drivers, who can benefit from a 21 mile per gallon average. Additionally, the Sierra has a $38,710 MSRP and will qualify for a $2,200 federal tax credit.

9. 2010 Mercedes Benz GL350 BlueTec – Credit: $1,800

Car buyers looking for clean-diesel technology as well as enough room for the whole family should look to the Mercedes Benz GL350 BlueTec. The vehicle also boasts impressive safety features such as a fuel system shutdown in the event of an accident. Although the price is a bit high at $60,825, the GL350 does qualify for a $1,800 tax credit.

10. 2010 Cadillac Escalade Hybrid – Credit: $2,200

Energy conscious Cadillac Escalade fans can now get the full-sized luxury SUV they love, in the form of an efficient hybrid. With a base MSRP of $51,185, the automobile boasts a 5-star crash rating, and 3-row seating. It also qualifies for $2,200 federal incentive if you purchase before the end of the year.

Happy Earth Day!

Earth Day is a great reminder to go green and reduce our carbon footprints. As I have explained before, there are plenty of tax incentives to live a more energy efficient lifestyle. A few weeks ago, the RDTC Tax Help Blog posted a blog entry explaining some of the tax advantages of going green in 2010. Check out the article, and think about what you can do to help the planet today in honor of Earth Day! I give thanks to Sacramento Scoop.com for the above graphic.

The Tax Advantages of Going Green in 2010

Last week the RDTC Tax Help Blog posted a new entry explaining the tax advantages of going “green” in 2010. As you can see from the text below, there are plenty of credits and tax breaks for both individuals and businesses that make energy efficient purchases. You can find a snippet of the original entry below, or checkout the full text at RDTC.com.

Driving Green

Unfortunately many taxpayers are under the impression that all of the tax incentives for buying a hybrid vehicle have expired. However, this is not true. There are plenty of popular vehicles that qualify for the tax credit. A few 2010 Ford Hybrids qualify for a couple of credits, including the Fusion, which can qualify for a credit of up to $3,400. Additionally, electric vehicles such as the Chevy Volt offer the best credits. If you decide to buy an electric vehicle in 2010 then you can claim a credit of up to $7,500.

Conscious Commuting

If you live close enough to your work to be able to ride your bicycle back and forth every day, then you might be eligible for tax-free reimbursement from your employer (if they participate in the program). New legislation allows employers to give employees up to $20 a month for riding a bike to work. Additionally, employers can reimburse up to $230 per month of an employee’s public transportation expenses. Be sure to talk to your employer or human resource department to see if they offer conscious commuting reimbursements.

Solar Savings

Homeowners and businesses have been able to take tax credits for installing solar panels for a while now, but many taxpayers are resistant due to the high expense. However, the prices of solar upgrades have gone down drastically over the past few years. Additionally, even less expensive solar products – such as solar powered water heathers – will qualify for a tax credit of up to 30% of the purchase price. This credit can even be claimed against the AMT.

Continue reading at RDTC.com…

10 “Green” Ways to Use your Tax Refund

One great way to maximize your tax refund is by investing the money you get into going “green.” In addition to lowering your carbon footprint, you can also save money and take advantage of numerous tax incentives. To help all of you looking to go “green” this tax season, I have composed the following list of the top ten ways to use your tax refund to help the planet.

1. New windows

If you do not have them already, installing energy-efficient, or double=paned windows can be a great way to use your refund. Not only will installing these new windows keep the cold out and the heat in, but you can also claim federal tax deductions for qualifying installations, if installed before December 31st of 2009. You can deduct 10% of the cost, up to $200 for all windows, skylights, and storm windows.

2. Hybrid Vehicles

The arrival of new and updated hybrids in 2009 also brings with it a round of new green auto deductions. If you purchase one of the new plug-in electric vehicles, you will qualify for a new tax credit, between $2,500 and $7,500, based on the battery capacity. Get them quick though, as phase-outs begin after the first 250,000 vehicles are sold. Additional credits are also available to qualifying hybrid and biodiesel vehicles manufactured after 2006, depending on their battery capability, manufacture date, and hybrid ability.

3. Replace your Lights

Replacing one older bulb with a newer, more efficient one can save you up to $350 throughout the light of the bulb! Replacing all lights in your home (or office) with new, energy efficient bulbs is a great way to spend your refund because it will also save you money in the future. Additionally, if you are remodeling a building and purchase more efficient lighting for it, you may even qualify for a deduction or credit for doing so.

4. Start a Garden

A lot of people have dreamed of having a garden of their own, but simply the time or money to do so. Using your tax return to fund this new endeavor is a great investment that you will not regret. Not only will having a garden of your own give you a new and free therapeutic activity, but you will now have a supply of fresh fruits and vegetables (if that is what you decide to plant) free of charge!

5. Green Mutual Funds

Much like other mutual funds, “green” mutual funds take your money and invest it in to other companies, hopefully giving you a good return on investment over time. What makes “green” mutual funds different is that they only invest your money in companies who actively benefit the environment with their products, have projects running that help the environment, or have clean and sustainable business modules.

6. Recharge and Save

More than 3 billion batteries are purchased, used, and thrown away by Americans every year. That is a lot of money, and a lot of trash. Purchasing batteries and appliances that are rechargeable is a great way to save money and do good for the environment at the same time.

7. Treat Your Kitchen

Purchasing new appliances for your home will help you save energy and money, as well as give your Kitchen a new look! You might be surprised at how much energy old microwaves, ovens, blenders, coffeepots, etc. waste compared to new efficient models. Remodeling your kitchen will all new appliances is a great “green” way to invest your refund, while also increasing the value of your property.

8. New Heater or A/C

Updating to a new air conditioning and heating system will benefit you in many ways, including a nice tax benefit. As long as your new a/c and or heater was placed in to service between Jan. 1st 2009 and Dec. 31st, you can claim a credit of $300, or possibly even more depending on the system you used. Check the IRS website for a full list of credit qualifying products.

9. Alternative Energy Stocks

If you like to play the stock game, and you love the planet, then you may be interested in investing in alternative energy stocks. It can be confusing if you are a beginner, but as the trend spreads there will be more information available. For now, check out sites like AltenErgyStocks.com for more ideas and tips.

10. Home State Incentives

While there are a lot of green Federal tax incentives for both the 2008 and 2009 tax year, there are also many States who offer “green” State tax incentives as well. Be sure to check your States website for more details, or speak to a local tax professional.