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Investments in saving energy can provide a better return than many stocks can provide in today's market. Now is the time to go green with your energy use, and taking advantage of tax credits and incentives makes it even more affordable to do so. Invest wisely, reduce your environmental footprint and save big.

Arkansas Tax Breaks

Modernization: Certain businesses that have been in operation for at least two years may be eligible for sales and use tax credits when they purchase equipment to increase productivity and efficiency. Additionally, the InvestArk program provides a sales and use tax credit to qualified, established businesses that invest $5 million or more at a single location in plant or equipment for modernization.

Pollution Control: Companies may be exempt from the 6 percent Arkansas Gross Receipts Tax for the sale of pollution control machinery and equipment when it's used by manufacturing plants, processing facilities or by cities and towns to prevent or reduce air or water pollution.

Waste Reduction and Recycling: Businesses that purchase waste reduction, reuse or recycling equipment can receive a tax credit equal to 30 percent of the equipment's cost and installation. Certification that states the business is reducing, reusing or recycling solid waste material for commercial ?purposes is required.

Incentives from Energy Companies

Energy Efficiency Improvements: Entergy offers customers incentives for duct efficiency improvements, incandescent light bulb replacement to Energy Star CFL bulbs, heating/cooling system improvements, air sealing efforts and ceiling insulation improvements. SWEPCO offers rebates to residential customers who replace their existing heating/cooling systems with Energy Star rated systems. New construction does not qualify with SWEPCO.

Time of Use Rate: Entergy Arkansas' time-of-use rate factors ?into rates the time when energy is used. Lower rates apply during off-peak hours, while higher rates apply during peak hours, mirroring the costs associated with supplying the energy.

Loans for Green Homes

First Electric Cooperative, North Arkansas Electric Cooperative, Ozark Electric Cooperative and Petit Jean Electric Cooperative offer home and energy resource conservation loans to home-owners who make certain energy-efficient upgrades to their existing homes. Additionally, several banks offer incentives, such as reduced closing costs, to those who are borrowing to build Energy Star compliant homes.

FEDERAL TAX CREDITS FOR CONSUMERS

Plug-in hybrid electric vehicles: Between $2,500 and $7,500, based on battery system capacity. The first 250,000 vehicles sold in the U.S. receive the full tax credit, which phases out beyond ?that level.

Other fuel-efficient vehicles: Hybrid gasoline-electric, diesel, battery-electric, alternative fuel and fuel cell vehicles placed in service after Jan. 1, 2006 qualify for tax credits determined by vehicle weight, technology and fuel economy. Credit for hybrid and diesel vehicles is limited per individual manufacturer. See dealers for more information.

Home Improvements: A total of $500 in tax credits is available for home improvements, including windows, doors, insulation, roofing, heating and cooling equipment and biomass stoves placed in service between Jan. 1, 2009 and Dec. 31, 2009. Products must meet the International Energy Conservation Code (IECC), be Energy Star qualified or be deemed eligible in a Manufacturer Certification Statement. You should also retain receipts for your purchases. Installation expense does not qualify.

• Exterior Windows & Skylights: 10 percent of the cost up to $200.

• Storm Windows: 10 percent of the cost up to $200 in applicable climate zones.

• Exterior Doors: 10 percent of the cost up to $500.

• Storm Doors: 10 percent of the cost up to $500.

• Insulation: 10 percent of the cost up to $500. Insulation must be expected to last five years or have a two-year warranty.

• Roofing: 10 percent of the cost up to $500 for metal and asphalt roofs that have a two-year warranty or are expected to last five years.

• Water Heaters: $300 for gas, oil and propane water heaters or electric heat pump water heaters. Energy Star qualified electric heat pump water heaters and whole-home gas tankless and gas condensing models will qualify, while Energy Star qualified high-efficiency gas storage water heaters do not.

• Biomass Stove: $300 for biomass stoves that burn biomass fuels to heat homes or to heat water and have a thermal efficiency rating of at least 75 percent.

A variety of credits apply for HVAC systems. See the Energy Star web site at www.energystar.gov for more information.

Residential Energy Production: The following systems must be placed in service between Jan. 1, 2006 and Dec. 31, 2016 to qualify for tax credits. New home construction also qualifies.

• Solar Energy Systems: 30 percent of the cost for qualified solar water heating and photovoltaic systems. Photovoltaic systems must provide electricity for the residence and meet fire and electrical code requirements to qualify. Solar water heating systems must be certified by the Solar Rating & Certification Corporation to qualify for the credit, which is capped at $2,000. Additionally, systems must provide water for use solely inside the dwelling and derive at least ?half of the energy generated from the sun.

• Small Wind Energy Systems: 30 percent of the cost up ?to $500 per each half kilowatt of capacity with an overall maximum of $4,000 for residential small wind turbine systems. Systems placed in service between Jan. 1, 2006 and Jan. 1, 2008 do not qualify.

• Fuel Cells: Up to 30 percent of the cost, up to $1,500 per half kilowatt of power capacity, for installing fuel cell and micro-turbine systems. Fuel cell systems must have a capacity of at least 0.5 kilowatt and an efficiency rating of at least 30 percent.