It’s Fix the Tax Code Friday! This week, I’ve been researching federal energy tax credits for an Earth Day post that I’m writing (yes, I’m aware that Earth Day is long gone – wait for the post, you’ll get it). I’ve been intrigued to see the reactions on both sides of the aisle about tax credits for energy efficient appliances and housing amenities.
Proponents of energy credits say that taxpayers need more incentives to go green. Opponents of energy credits claim that they’re being penalized for not “buying in” to the idea of global warming and other “green” issues.
What do you think? Should saving the planet be its own reward? Or should there be tax incentives to encourage the behavior?
Today’s Fix the Tax Code Friday question is:
Should the federal government allow energy tax credits or should environmentalism be tax neutral?
In celebration of Earth Day, the state of Missouri is offering a sales tax holiday this week on all “Energy Star” rated appliances. The “Show Me” state is launching a “Show Me Green” tax holiday on energy efficient appliances. From April 19 until midnight on April 25, 2009, resident can buy qualifying appliances and skip on the sales tax.
It may seem like a small savings but consider the math. Missouri’s sales tax rate is 4.225%. An energy efficient refrigerator will run you around $1,000. The sales tax on that $1,000 in Missouri would about $42 – enough to fill it up with some groceries.
The following “Energy Star” certified appliances qualify for the holiday:
- Clothes washers
- Water heaters
- Dishwashers
- Air conditioners
- Furnaces
- Refrigerators
- Freezers
Some cities and counties across Missouri are also suspending their local taxes. Additionally, federal tax credits may apply.
For more about federal tax credits for energy efficient appliances and household improvements, check in throughout the week.
