Efficiency First

Cashing in on Existing Federal Tax Credits

Strong incentives are already in place for efficiency and renewable energy upgrades

July 8 – While the American Clean Energy and Security Act is still pending on Capitol Hill, homeowners and Home Performance contractors alike can benefit from federal tax credits that are available right now. Nick Paulson, a business writer for the Stevens Point Journal in central Wisconsin, recently reported on how some Midwestern homeowners are taking advantage of the tax credits, which were created by the Energy Policy Act of 2005 and expanded under the terms of the American Recovery and Reinvestment Act that President Obama signed in February.

For residential improvements in 2009, a homeowner can receive a tax credit up to 30 percent of the project’s cost for renewable energy systems, such as solar or wind power. For increasing the efficiency of a home by installing new windows or insulation, that 30 percent credit is capped at $1,500, according to the Database of State Incentives for Renewables & Efficiency.

With a credit that saves on the significant upfront costs, such as $8,000 to $12,000 for a two-panel solar hot water system, renewable and efficiency systems are becoming an affordable reality that will save in the long run.

“For every dollar you spend on efficiency, you’ll save $3 on your renewable project,” said Kari Heinrich, solar hot water program manager for Focus on Energy. “The best dollars spent are on efficiency first.”

Read the full article here: www.stevenspointjournal.com/apps/pbcs.dll/article?AID=2009906220413