There are several tax credits that people may be eligible for when they do their income tax return, or when a business does their taxes at the end of the year. Two of them were created relatively recently, and they are made available to people who contribute to the country as well as pay into the system during the year through income tax or business procedures. They are the investment tax credit and the working tax credit.

The investment tax credit (ITC) creates a reduction in an individual’s or business’ tax liability when they have made investments towards solar energy generation technology in the previous year. This and other renewable energy tax policies serve a purpose in making high-wage American jobs, thus bringing about economic growth and helping to protect the environment. These tax policies also lower energy bills for businesses and consumers. This incentive to invest in the solar energy industry ensures the construction of projects, manufacturing, and the ultimate growth of the solar industry throughout the United States. The credit is in effect until the end of 2016. Though this has only recently gained momentum, a similar incentive was put in place in 2006 through the Energy Policy Act of 2005. There is a 30% uncapped credit for both residential and commercial systems with the ITC. When the economy took a dramatic downturn in 2008, the Emergency Economic Stabilization Act of 2008 provided for the commercial and residential solar ITC to be extended for eight years. These credits helped with creating a large amount of growth in the U.S. solar industry from 2006 to 2007.

The Making Work Pay credit, or working tax credit, is for people who have an income under a certain amount defined by the guidelines. If someone makes low to moderate income through working, there is a good chance that they will be eligible for the $400 credit. They will get this whether or not they are even going to be receiving a refund. If you feel confident enough, you can use a tax program to do your own taxes, or you can visit a tax attorney or preparer so you can learn about the deductions and credits that you may be eligible for. The federal government has executed the Earned Income Credit, working tax credit, and various others to aid the working class in keeping more of their money in their pockets rather than having to give to the government or receive very little.

Through the investment tax credit and working tax credit, many people and businesses have benefited from the actions that they have taken in the previous year. Every little bit counts in the struggling economy, so you should do your research either online, on a tax preparation program, or by speaking to a professional. Doing your tax return does not have to be a stressful experience, even though most people dread this time of year as they expect to get charged by the IRS or not get much of the taxes back that they put in.