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Sep. 22, 2006
By JOHN PAWLAKTAX INCENTIVES ASSISTANCE PROJECT Don't throw out those energy-related receiptsSPECIAL TO THE PVT
If you have been putting off buying solar screens during the summer, that new energy-efficient hot water heater, new "low-e value" windows or storm doors, this may be the year to finally make that purchase. The Tax Incentives Assistance Project (TIAP), which is sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005. Information on TIAP can be found on the web at www.energytaxincentives.org for information pertaining to consumers, businesses and energy-efficiency firms. Here are just some of the items on which you could save big bucks this year. Homeowners can get credits for energy improvements to their homes, such as windows, insulation, envelope and duct sealing. They can get credits for installing efficient air conditioners and heat pumps; gas or oil furnaces and furnace fans; and gas, oil, or electric heat pump water heaters in new or existing homes. For homeowners the maximum credit for all taxable years is $500 -- no more than $200 of the credit can be attributable to expenses for windows. Credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. Credits are available to homeowners and businesses who install qualifying solar equipment including photovoltaic cells and solar water heating systems. Taxpayers are allowed one credit equal to 30 percent of the qualified investment in a solar panel, up to a maximum credit of $2,000, and another equivalent credit for investing in a solar water heating system. But remember, no part of either system can be used to heat a pool or hot tub. Businesses can get deductions for new or renovated buildings that save 50 percent or more of projected annual energy costs for heating, cooling, and lighting compared to model national standards, and partial deductions for efficiency improvements to individual lighting, HVAC and water heating, or envelope systems. Credits are available to businesses as for consumers, including heavy-duty, hybrid, gasoline-electric vehicles. Credits similar to the consumer credits are available to businesses that install qualifying solar equipment. Homebuilders are eligible for credits for homes that exceed a national model energy code by 50 percent, subject to certification. Manufactured home producers are also eligible for a smaller credit for manufactured homes that exceed a national model code by 30 percent or that meet Energy Star standards. That's www.energytaxincentives.org or look for the Treasury Department and IRS guidance document (IR 2006-34) for more information on how to save money at tax time. Just remember to save those receipts for proof. You could save hundreds of dollars. |
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