Bauer Specialty Insulation & Gutters

TAX CREDITS FOR ENERGY SAVINGS!  

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

Click here to view the details of the energy efficient tax credits for homeowners.  Tax Credit Summary

 

The new American Recovery and Reinvestment Act of 2009 includes great benefits for homeowners to improve the energy efficiency of their primary residence. The expanded tax credits are a huge incentive because tax credits lower your tax liability directly.  For example if your federal tax bill totaled $3,000 a tax credit will reduce that amount directly.  Deductions only save you the percentage of the tax bracket you're in.  

Just as a solid foundation is vital to building a house that will last insulation and air sealing are critical in creating an energy efficient building.  Quality HVAC technicians consider the shell of the home in order to properly size heating and cooling equipment.  Those who don't often oversize and cause other problems in which mechanicals short cycle resulting in energy loss, lack of proper dehumidification and ineeficent operation.  This wastes energy and can shorten the life expectancy of the unit.  

A properly insulated home with a tight envelope will retain the energy you spend to create a comfortable environment.  This coupled with conservation techniques and proper equipment will set you on the path for true energy savings.  

 Here's a recap of the main energy tax credits applicable to homeowners from the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE)

"Economic Stimulus Act Extends Renewable Energy Tax Credits

The tax section of the American Recovery and Reinvestment Act of 2009 provides a three-year extension of the production tax credit (PTC) for most renewable energy facilities, while offering expansions on and alternatives for tax credits on renewable energy systems. The extension keeps the wind energy PTC in effect through 2012, while keeping the PTC alive for municipal solid waste, qualified hydropower, and biomass and geothermal energy facilities through 2013. In addition, a two-year extension of the PTC for marine and hydrokinetic renewable energy systems will keep that tax credit in effect through 2013. The PTC provides a credit for every kilowatt-hour produced at new qualified facilities during the first 10 years of operation, provided the facilities are placed in service before the tax credit's expiration date. For 2008, biomass facilities fueled with dedicated energy crops ("closed-loop biomass"), as well as wind, solar, and geothermal energy facilities earned 2.1 cents per kilowatt-hour, while other qualified facilities earned 1 cent per kilowatt-hour."

See pages 33-34 of theAmerican Recovery and Reinvestment Tax Act of 2009 (PDF 5.9 MB) of the actual bill.