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Daniel Ehrgood
Muncy
Here's a great way to save money by spending it!
If you invest $10,000 in solar panels or geothermal systems, you get a $3,000 income tax credit. If you replace heating systems, or doors and windows, or add insulation or even buy new energy-efficient appliances, you are eligible for up to a $1,200 tax credit. These credits directly reduce, dollar for dollar, your tax bill. Though there is an annual limit, you may use these credits year after year. So, for instance, when you need a new stove, furnace or washer and dryer, make sure it is eligible for the tax credit.
Most of us use the standard deduction when filing taxes, but this energy credit works differently. Once your tax amount is calculated, the amount of your credit offsets any amount you owe. If you have a tax bill of $3,000 and a credit of $3,000 you will owe nothing. And, you will have reduced your energy bill.
This is all possible under The Inflation Reduction Act, which was passed with the support of Senator Bob Casey and all his democratic colleagues. The tie-breaking decisive vote was cast by Vice President Harris. Not a single Republican supported this bill.
You win coming and going thanks to this forward-looking legislation.