The Obama Administration’s plan to stimulate our country’s sagging economy with a massive infusion of grants, tax breaks and other federal spending includes a boost for people who want to save energy.
The stimulus bill approved by Congress earlier this year contains a federal tax credit for consumers who add insulation, reflective roofing or energy-efficient windows, doors or heating systems. Those who take advantage of the tax credit can have the federal government pay for up to 30 percent of those energy-cutting home improvements.
Improvements made in 2009 and 2010 qualify for the tax credit. The most a person can receive is $1,500, which is 30 percent of a $5,000 purchase.
Other equipment is eligible for the tax credit without any cap on the amount. This includes solar energy panels, solar hot water systems, geothermal heat pumps, small wind systems or fuel cells. That equipment must be installed by 2016 to qualify.
These tax credits come on top of incentives that are already being offered by electric and gas utilities.
In a previous column, THIS SPACE described the $1,200 discount my employer, Seattle City Light, and Puget Sound Energy are providing on ductless heat pumps. Among the other incentives are rebates for Energy Star water heaters, high-efficiency air-source heat pumps and insulation.
Each of these steps has the potential to significantly reduce your energy consumption and lower your monthly bills. So if you’ve ever thought about replacing your leaky, single-pane windows, rattling furnace or rusty water heater, there’s no time like now.
The ONE THING you can do this week to save energy and keep some extra money in your bank account is to investigate the incentives available from your utility and the federal government then find a qualified company to help you install some energy-efficient upgrades. Many installers are looking for work too, which means a little negotiating could save you even more.
You’ll appreciate the increased comfort in your home and the smaller energy bills for years to come.