Understanding Energy Rebates
With all of the buzz around tax time about rebates, reductions and write offs, it can get confusing as to what a person needs to do. The short answer is that in order to get money from energy rebates, the upgrade or the install of the system of appliance needs to be done in the same calendar year as the taxes that are being prepared. For example, if you installed solar panels on your house in July of 2010, then when you file your taxes in the winter of 2011 is when you would see the rebate come back to you.
How do you know if there is an energy rebate available to you? The first thing to do is to search on the internet. Do a search by your state and see if there are ones specific to your state. Some states are investing more money than others in an effort to be greener and cleaner for the future and are willing to offer more rebates to residents who install or upgrade in to their homes. The amount of the rebate will vary by state, so if you still have questions about the amount, call an information line to your capitol building.
The Federal government also offers certain energy rebates to people throughout the year. Some of the rebates could include getting more money back if you buy an electric vehicle or a hybrid one. There are even rebates where you can get more money back if you have installed high efficiency appliances and gotten rid of the ones that hogged up the energy in your home. When you purchase any type of appliance, car or solar panel system, keep all of the documentation and receipts to turn in. When you have proof of your expenses it is easier to fill out the paperwork in the end.
Energy rebates aren't usually in the form of a cash back check from the government after you make the purchase. When you get a rebate from a product in the store you usually send in the UPC code with the receipt and get a check within about 6 weeks for the rebate amount. The government will actually give you energy rebates in the form of more money back at tax time. You might not even end up with cash back, but have to pay in less, depending on how you do your taxes. The government rebates are more like a credit to you and your family that add up each year.
