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About ACEEE --> ACEEE Newsletters --> Issue #8 --> Article #2

January 17, 2006

THE FEDERAL GOVERNMENT IS HERE TO HELP YOU! TAX INCENTIVES FOR EFFICIENCY NOW AVAILABLE

In August 2005, the President signed the Energy Policy Act of 2005, including just under $2 billion in tax incentives for new and existing homes, commercial buildings, home appliances, and advanced vehicles. ACEEE, working with a number of other organizations, has formed the Tax Incentives Assistance Project (TIAP) to provide information to consumers and businesses on what's eligible and how to qualify. Incentives are available for:

  • Credits of up to $500 for homeowners who install insulation, windows, heating and cooling equipment, and water heaters meeting certain efficient standards;
  • Credits of $2,000 for home builders who construct new homes that perform 50% better than the national model energy code;
  • A deduction of up to $1.80 per square foot for owners or designers of new and existing commercial buildings for exceeding the ASHRAE 90.1 standard by 50%;
  • Credits of up to $3,150 for buyers of hybrid and clean diesel vehicles, based on a formula calculated from mileage and total fuel savings;
  • Credits of up to $150 to manufacturers of high-efficiency refrigerators, clothes washers, and dishwashers;
  • Credits of up to $2,000 for installation of solar electric or thermal systems.

There are also incentives for fuel cells and microturbines. These incentives are mostly in the form of federal income tax credits, with the exception of the deduction for commercial buildings. Most incentives are in effect beginning January1, 2006 through December 31, 2007, with the exception of vehicle credits which will run through 2010. Visit the TIAP Web site for the details, and if you have a Web site aimed at educating consumers and businesses on energy efficiency, please link to the TIAP site.

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