Bailout Bill Provides Energy Tax Credits for Consumers
Incentives
The Keene Sentinel
Joe Vines
Boston University Washington News Service
October 15, 2008
WASHINGTON −While the public has largely focused on the $770 billion financial bailout bill President George W. Bush signed in to law two weeks ago, the bill also gives homeowners tax credits for being energy-efficient.
The tax incentives were originally part of the Energy Policy Act that Congress passed in 2005 and that expired at the end of 2007. The new act renews the incentives for 2009 but does not apply to 2008.
The tax credit for new energy-efficient doors, windows, metal roofs and insulation is 10 percent of the cost up to $500 for all such improvements.
The credit for solar water heaters, on the other hand, is 30 percent of the cost, without limit. A $2,000 limit in the expired law was removed, and the credit has been renewed through 2016.
“While not a comprehensive solution to our nation’s energy woes, these incentives will go a long way to increase clean and renewable energy production and encourage greater energy efficiency,” said Sen. Judd Gregg, R-N.H., who was the lead negotiator on the bill for Senate Republicans,
To receive a credit on insulation, the installed item’s primary function must be to insulate; so installation of vinyl siding does not qualify.
Energy Star is a joint program of the U.S. Department of Energy and the Environmental Protection Agency. Products with Energy Star labels meet strict energy-efficiency standards and oftentimes qualify for tax credits. Any window or door with the Energy Star label qualifies but not all Energy Star heating and air-conditioning systems qualify for the credit. The cost of installation is not included in calculating the tax credits.
The legislation also renewed the tax credit on hybrid vehicles. The deduction can be as much as $3,400 for the most fuel-efficient cars. However, once a company sells 60,000 of a certain hybrid vehicle, the amount of the tax deduction goes down
Information concerning the tax credits can be found at www.energystar.gov/taxcredits. “There’s been an awful lot of interest in the page because a lot of people are going to do these improvements and they want to get a couple hundred bucks extra if they can,” said Karen Schneider, information technology manager for Energy Star. The Web page is one of the most popular on the site, she said.
Gregg said more must be done to conserve energy. “I have introduced a proposal that would more than triple funding for the weatherization assistance program, which provides assistance to low-income individuals and families so they can install energy-efficiency measures in their homes,” he said in a statement.
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