The American Recovery Act of 2009

 

Don’t forget to let the government help you pay for upgrading your home!!

 

I recently went to Southern Oregon University to hear the student research being presented on leadership sustainability, where I was introduced to an example of the actual cost of an Oregon residential 2kW solar electrical system after credits and incentives.

 

2kW solar electrical system     +$18,000

Energy trust incentive                -$4,000

State tax credit                            -$6,000

Federal tax credit                         -$2,000

_______________________________

End Cost=                                    $6,000

 

 

**Quick note: a tax credit is more valuable than a tax deduction because it reduces tax owed dollar-for-dollar, while a deduction only reduces taxes by a percentage.**

 

In addition to federal tax incentives, some consumers may also be eligible for state or utility rebates, as well as state tax incentives for energy efficient homes, vehicles, and equipment.  Check your state’s energy office web site for more information on specific state tax information.

 

*If you have any trouble locating your state energy website, e-mail me at Fievels@andthenbam.com <~ and I’ll do my best to locate it for you.

 

 

Here are the three main Consumer Tax Credits currently available:

 

Home Energy Improvement~ specific products such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500 for improvements starting January 1, 2009 through December 31, 2010.

 

Residential Renewable Energy~ solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and micro-turbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016.

 

Automobile~ Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010.  The amount of the credit depends on the fuel economy, the weight of the vehicle, and the manufacturer’s eligibility*. 

 

*This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles! At that point, the tax credit for each company’s vehicles will be gradually reduced over the course of fifteen months. 

 

For specific information see: Summary of the Credit for Qualified Hybrid Vehicles

 

Alternative-fuel vehicles, diesel vehicles with advanced lean burn-technologies, and fuel-cell vehicles are also eligible for tax credits.

 

For specific information see:  Alternative Motor Vehicles.

Plug-In electric vehicles also qualify for a tax credit starting January 1, 2010.  The credit for passenger vehicles and light trucks ranges from $2,500 to $7,500 depending on battery capacity.  The first 200,000 vehicles sold by each manufacturer are eligible for the full tax credit; the credit will then be phased out over a year.

Plug-In hybrid conversion kits are eligible for a 10% credit, capped at $4,000 through 2011.

Please visit www.energy.gov and www.energystar.gov for a complete summary of energy efficiency tax credits and eligible products.