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Energy Tax Credit

Energy Tax Credit Definition

A type of tax incentives encouraging investments in energy-efficient projects. E.g. homeowners who make energy efficient improvements to their homes may obtain tax credit to certain extent of the cost of the improvements. Investment can be adding insulation, energy efficient windows, energy-efficient heating and air conditioning systems, alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. Tax credit can also be applied to purchasing of electric or hybrid vehicles.

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