Many consumers choose energy-efficient vehicles and appliances not only because they are environmentally responsible, but also because they want to save money. With the ratification of the American Recovery and Reinvestment Act of 2009, consumers can save even more money with their environmentally friendly purchases. The Act extends the programs instituted by the Emergency Economic Stabilization Act of 2008, which provided tax credits for consumers who purchased energy-efficient appliances, equipment, and vehicles.
Home Improvement Tax Credits
Homeowners who make environmentally friendly improvements to existing homes may be eligible for tax credits up to $1,500. Improvements may include installation of energy-efficient lighting, windows, insulation, doors, roofs, and heating/cooling (HVAC) equipment. Guidelines for the credit include the following:
- The tax credit will equal 30% of the cost, up to $1,500.
- To qualify, improvements must be made between January 1, 2009 and December 31, 2010.
- The home must be the taxpayer’s primary residence. New construction homes and rental properties are ineligible.
Residential Renewable Energy Tax Credits
Consumers who install renewable energy sources for their homes are also eligible for tax credits. The credit will equal 30% of the purchase price, and the 2009 Act eliminated the cap on renewable energy tax credits.
- Eligible improvements include installation of solar energy systems, such as solar water heating and electric systems.
- Geothermal heat pumps, microturbine systems, residential fuel cells, and small wind systems also qualify.
- Systems must be placed in service before December 31, 2016.
Automobile Tax Credits
Both individuals and businesses who purchase new hybrid cars may qualify for a tax credit. The new vehicle must meet emissions standards and use less gasoline than other vehicles in the same weight class. Other provisions of this tax credit include the following:
- Vehicles must be purchased by December 31, 2010.
- The tax credit amount depends on the vehicle’s weight and fuel economy.
- The credit is also tied to the volume of vehicles sold by each manufacturer. Once a manufacturer has sold 60,000 vehicles, the tax credit for that manufacturer’s vehicles will be phased out over 15 months.
- Vehicles that use fuel cells, alternative fuel, lean-burn technology, or diesel may also be eligible for tax credits.
Ultimately these tax credits encourage consumers to make environmentally sound choices about home maintenance and transportation. In conjunction with measures like electrical current optimization, energy-conscious habits, and energy-efficient lighting, the current government incentives for energy efficiency and renewable energy sources give consumers more reasons than ever to go green.
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Posted by Administrator @ 10:19 am
Tags: energy, Energy Efficient Lighting, energy optimization, tax credit
2 Responses
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