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2011 Rebates Update: Heating & Cooling

GMS Editor — Wed, 09 Feb 2011 00:14:29 +0000

Home Heating & Cooling Equipment

What are the incentives for home heating & cooling equipment?

Please note that these incentives have changed as of February 17, 2009. If you installed home envelope components between January 1 and February 16, 2009, click here.

Purchasers of highly efficient heating, cooling, and water heating equipment can take tax credits of 30% of installed cost for purchasing qualifying equipment, as detailed below. These credits are available for systems placed in service from January 1, 2009, through December 31, 2010. There is a $1,500 cap on the credit per home, including the amount received for insulation, windows, air and duct sealing.

Congress extended this provision for 2011 with some modifications to eligibility requirements, and reductions in the cap to $500 per home. The $500 limit applies to heating and cooling equipment and to building envelope improvements, and applies to all years – if you received a credit in 2009 of $500 or more, you cannot receive it again in 2011. In addition, there are some instances where there is a cap on a specific product, see equipment descriptions’ links below for details.

I don’t think I qualify for this incentive – where can I find information on state-level incentives?

What types of equipment qualify?

Where must the equipment be used?

Under guidance issued by the IRS, equipment is eligible if installed in a home occupied by a taxpayer as their principal residence at the time the equipment is installed. This implies that equipment in new homes is generally not eligible since in new homes equipment is generally installed prior to occupancy. However, efficient equipment in new homes can help that home qualify for the new home tax credit.
What do I need to do to qualify for the incentives?

Under the IRS rules, manufacturers need to certify that specific measures are eligible. Homeowners should obtain a copy of this certification when buying these products from the manufacturer, contractor or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. Homeowners should also make notes on when each eligible measure is installed- only measures “placed in service” in 2009 or 2010 are eligible.

Click here to access IRS guidance on qualifying energy-efficient property.

I don’t think I qualify for the incentive – where can I find information on state-level incentives?

To apply for the incentive, use IRS form 5695.

Learn more, including details about qualifying products, at The Tax Incentives Assistance Project.

2011 Rebates Update: Solar

GMS Editor — Tue, 08 Feb 2011 22:25:21 +0000

Solar Energy Systems

What are the tax incentives for solar systems?

Homeowners are eligible for tax credits for qualified solar water heating and photovoltaic systems. Solar water heating systems produce hot water, photovoltaic systems produce electricity (including solar fans). The credits are available for systems “placed in service” at any dwelling unit, not necessarily the primary residence, between January 1, 2006 and December 31, 2016.

Note: This is a basic guide to the credit. For more detailed information, go to www.seia.org and download SEIA’s FAQs regarding the new legislation.

Who is eligible for the tax incentives?

The tax credits go to businesses that install solar equipment for their use, and to individuals who install qualifying systems on homes they use as a residence (unlike other consumer incentives, the dwelling does not have to be the taxpayer’s primary residence – second homes are eligible, although rental properties are not).

How do the incentives work?

The tax credits are for 30% of the cost of the system. For systems installed before January 1st, 2009, the maximum credit for individuals is $2000 for photovoltaic systems and $2000 for solar water heating systems. Systems installed after December 31, 2008 are not subject to a cap. To qualify, residential systems must meet certain criteria as follows:

* Solar water heating:

System must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the state government in which the system is located. SRCC is an organization set up by the solar industry to test and certify equipment so purchasers have an independent assessment of system performance.
At least half of the energy used by the system to heat the water must be solar energy. The credit is not available for expenses for swimming pools or hot tubs.

* Photovoltaic systems:

System must provide electricity for the residence, and must meet applicable fire and electrical code requirements.
This includes solar fans (the credit will cover the solar panel portion of the fan system).

What do I have to do to qualify for these incentives?

To qualify, tax payers will need to have evidence regarding:

the cost of the system (including labor and piping or wiring to connect the system to a home’s plumbing and/or electrical systems),
when it was placed in service,
whether the system meets the qualifying criteria discussed above.

For taxpayers installing solar PV or water heating systems at their residence, use the Residential Energy Efficient Property Form 5695.

Learn more at The Tax Incentives Assistance Project.

2011 Rebates Update: Wind & Geothermal Systems

GMS Editor — Tue, 08 Feb 2011 20:51:04 +0000

Small Wind Systems

What are the tax incentives for on-site wind systems?

On October 3, 2008, the Emergency Economic Stabilization Act of 2008, H.R. 1424, was enacted into law and includes a new federal-level investment tax credit to help consumers purchase small wind turbines for home, farm, or business use. Owners of small wind systems with 100 kilowatts (kW) of capacity and less can receive a credit for 30% of the total installed cost of the system. The credit will be available for equipment installed through December 31, 2016. This legislation marks the first federal incentive for small wind systems since 1985. The incentive was further expanded through the American Recovery and Reinvestment Tax Act of 2009, which removed the financial cap that had been present in the 2008 legislation..

Who is eligible for the tax incentives?

Home-owners, farmers, and businesses that install wind turbines with not more than 100 kilowatts of nameplate capacity are eligible for the incentive.

What do I have to do to qualify for these incentives?

To qualify, tax payers will need to have evidence regarding:

the cost of the system,
when it was placed in service,
whether the system meets the qualifying criteria discussed above.

Taxpayers installing on-site wind systems at their residence should use the IRS Residential Energy Efficient Property Form 5695.

Geothermal Heat Pumps

What are the tax incentives for geothermal heat pumps?

As part of the Emergency Economic Stabilization Act of 2008, an incentive was added for geothermal heat pump property. The incentive for businesses is available from Oct. 3, 2008 through December 31, 2016, and for residential installations the incentive is available for units placed in service starting January 1, 2008 until December 31, 2016. Qualified geothermal heat pump property refers to any equipment which uses the ground or ground water as a thermal energy source to heat the taxpayer’s residence, or as a thermal energy sink to cool the residence. The unit must meet the requirements of the Energy Star program which are in effect when the heat pump is purchased.

The residential incentive covers 30% of the expenditures in the year the incentive is taken, up to a cap of $2,000 if the property was installed prior to January 1, 2009. Qualifying geothermal heat pump property installed after December 31, 2008 is eligible for 30% of the installed cost without a cap, as provided under the American Recovery and Reinvestment Tax Act of 2009. The incentive is available for taxpayers installing qualifying equipment at their primary residence or a second home, but not for a rental property.

What do I have to do to qualify for these incentives?

To qualify, tax payers will need to have evidence regarding:

the cost of the system,
when it was placed in service,
whether the system meets the qualifying criteria discussed above.

Taxpayers installing geothermal heat pump systems at their residence should use IRS Form 5695 for the Residential Energy Efficient Property incentive.

Learn more at The Tax Incentives Assistance Project.

2011 Rebates Update: Fuel Cells

GMS Editor — Tue, 08 Feb 2011 20:16:51 +0000

What are the tax incentives for fuel cells?

These incentives are tax credits for two advanced distributed generation technologies: qualifying fuel cell and microturbine systems. Fuel cells generate electricity through a chemical process. They are somewhat similar to batteries, except fuel must be fed continuously to them. Microturbines are small power generation systems using a gas turbine engine, based on related turbines used in transportation. The credits are available for systems “placed in service” prior to December 31, 2016.

Who is eligible for the tax incentives?

Individuals are only eligible for the fuel cell tax incentive, while businesses can also apply for an incentive for microturbines.

What are the incentives and how do they work?

For fuel cells:

Credits are for 30% of the cost, up to $1000 per kW of power that can be produced.
To qualify systems must have an efficiency of at least 30% and must have a capacity of at least 0.5 kW.

* This incentive is permissible against the Alternative Minimum Tax (AMT).

What do I have to do to qualify for these incentives?

To qualify, taxpayers will probably need to have evidence regarding:

The cost of the system (this includes the power generation system itself and “associated balance of plant components, including, in the case of microturbines, “secondary components located between the existing infrastructure for fuel delivery and the existing infrastructure for power distribution”),
The capacity of the system,
The efficiency of the system, and
When it was placed in service.

Learn more at The Tax Incentives Assistance Project.

Missouri: Rebates, sales tax breaks to boost purchases of appliances

GMS Editor — Tue, 20 Apr 2010 23:34:22 +0000

By DON NORFLEET
The Fulton Sun

This is the week to buy energy-efficient household appliances in Missouri.

The state of Missouri has rolled out two incentive plans to encourage people to buy eco-friendly appliances.

One state program offers a rebate check and the other grants a Missouri sales tax holiday this week on qualifying energy efficient appliances.

In addition, many retailers are offering special discounts to attract customers to their stores. To further sweeten the deals, many utilities, including AmerenUE, also offer rebates on energy-efficient furnaces.

Starting Monday, Missourians who buy many new energy-efficient appliances will be eligible to receive up to $575 in rebates from a new statewide program if they don’t mind jumping through several bureaucratic hoops in order to achieve the rebate check.

Additional savings can be achieved this week by buying an appliance during the week-long special Show-Me Green Sales Tax holiday. No Missouri state sales taxes will be collected on qualifying Energy Star certified new appliances costing up to $1,500 per appliance if purchased between 12:01 a.m. on April 19 and ending at midnight on Sunday, April 25.

The rebates are funded by federal stimulus money through the American Recovery Act. States around the nation are giving rebates to consumers to replace inefficient home appliances with energy-efficient models.

From the federal government, Missouri received $5.6 million to fund its Energize Missouri Appliance Rebate Program, which started Monday.

Missouri will offer the rebates until all of the $5.6 million the state received from the federal government runs out.

Missouri consumers can qualify for rebates ranging from $75 to $500 with a maximum of $575 for multiple appliances.

Rebates on appliance models that qualify for the ENERGY STAR rating are: Gas furnaces, $125; central air conditioning, $100; air source heat pump, $250; tankless gas water heaters, $100; electric heat pump water heaters, $150; solar water heaters with gas or electric backup, $500; clothes washers, $75; and dishwashers, $75.

Eligible appliances are arranged into five categories. Only one rebate is allowed from each of five appliance categories — space heating, space cooling, water heaters, clothes washers and dishwashers. No more than $575 can be collected for multiple appliance purchases.

The appliance purchased must be a replacement for an existing appliance. Purchases made for constructing a new home are not included in the rebate program if the purchase did not replace an existing installed appliance.

Brandon Irwin, assistant manager at the Sears store in Fulton, said business was brisk Monday. He said the store is offering a 30 percent discount on qualifying ENERGY STAR appliances. “The discount itself without all of the other incentives is a terrific deal. The rebates and sales tax breaks further sweeten the deal,” Irwin said.

Starting Wednesday, a limited number of rebates also are scheduled to be available for consumers to reserve directly on-line at www.missouriappliancerebate.com or by telephone at 877-541-4848. It’s important to print the reservation form that is used in the application for the rebate. The rebate program may last longer in Missouri than it did in Illinois, which cut off the program after one day when all of its rebate reservations had been made.

Consumers also must show proof that their old replaced appliance was recycled. This can be determined by visiting MissouriApplianceRebate.com for details on recycling proof.

Within 60 days of making a reservation, consumers then must sign and mail their completed rebate application form along with the proof of purchase, residency and recycling to: Energize Missouri Appliance Rebate Program, Dept. 21282, P.O. Box 3688, Medina, Ohio 44258-3688.

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Connecticut Extends Deadline for Appliance Rebate Program

GMS Editor — Thu, 01 Apr 2010 11:01:40 +0000

Heard about those appliance rebates?
By Patricia Daddona
Publication: The Day
Published 03/27/2010 12:00 AM/Updated 03/27/2010 04:29 PM

Most Connecticut consumers apparently not aware of deal

Consumer alert: Combining utility, manufacturer, store and state rebates when buying a single Energy Star appliance can save hundreds of dollars.

Really. You read that right.

That’s the word state officials, retailers and utilities are trying to get out to the tight-fisted, recession-weary consumer, who apparently, for the most part, hasn’t heard.

State officials especially have a motive in publicizing their rebate: They still have nearly $3 million in federal stimulus money left to offer, even though some of the savings – $50 rebates for refrigerators, freezers and air conditioners – are relatively small.

So far, only 1,688 consumers have cashed in on $142,100 worth of state rebates since late January, according to data provided through February by staff for Gov. M. Jodi Rell and the Connecticut Municipal Electric Energy Coop.

But the state has extended its deadline from April 30 to Sept. 30, so start doing some homework along with your shopping and you, too, can cash in.

Separately, the savings on individual rebates may not be huge, (with the exception of the $500 state rebate for central air conditioners or heat pumps), but they are available now, and even the smaller state rebates, combined with other discounts, can really add up.

At Morgan & White in Groton, for instance, a consumer can save more than $350 on a $999 Bosch front-loading washer. This particular rebate doesn’t begin until April 1st, but here’s a breakdown on the savings available:

• A $100 rebate from the state.
• A $50 rebate from the store.
• A $200 manufacturer’s rebate if the purchase is paid on a Visa credit card.
• Even more savings from your local utility, if you first participate in a home energy audit.

Are there caveats? Naturally.

The consumer must be replacing an inefficient appliance with a new, Energy Star-rated one.

The consumer must wait six to eight weeks for the state’s rebate check.

The consumer is entitled to only one state rebate deal per appliance, but up to three for room air conditioners.

The savings from utilities may vary, depending on whether you have Connecticut Light & Power, United Illuminating or a municipal utility. Also, you have to participate in the home energy audit before buying the new appliance to qualify for the utilities’ rebates.

There’s another perk, however. Through Home Energy Solutions, the audit program for CL&P and UI, those two utilities will double their rebate if you act within 45 days of your audit, said Chris Ehlert, manager of residential energy services for UI, and Ray Wilson, the director of the energy office for the state Office of Policy & Management.

The audit costs $75.

One last detail: the millions of rebate dollars in federal stimulus funding available through the state are technically good through February of 2012, not just through Sept. 30, Wilson said – but that’s only if the money doesn’t run out.

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New Jersey Home Appliance Rebate Program Launches Today

GMS Editor — Thu, 01 Apr 2010 10:52:02 +0000

NEWARK – The New Jersey Board of Public Utilities and New Jersey’s Clean Energy Program™ announced the April 1 launch of the federally funded appliance rebate program.

The rebates are part of the $8.3 million the state received from American Recovery and Reinvestment Act funding, which is being used to encourage all New Jersey residents to purchase Energy Star® qualified home appliances. The U.S. Department of Energy approved a proposal the BPU submitted to receive the funds last December.

“The federally funded rebates give New Jersey residents an opportunity to upgrade their appliances to Energy Star qualified models, which will help reduce their home energy usage,” said public utilities board President Lee A. Solomon. “This program helps residents save money and protect the environment.”

Customers purchasing select Energy Star clothes washers may be eligible for a $35 rebate. Select Energy Star dishwashers may net rebates of $25 or $50, while select Energy Star refrigerators may yield a $75 or $100 rebate.

The program will run from April 1-30, or while funding lasts. Program termination will be posted at www.NJCleanEnergy.com.

Rebates will be available through a mail in rebate or an instant rebate from the retailer. For a complete list of retailers offering an instant rebate, visit New Jersey’s Clean Energy Program’s website at www.NJCleanEnergy.com or call 1-866-NJ SMART.

In addition to the federally funded appliance rebates, New Jersey’s Clean Energy Program offers rebates for clothes washers, dehumidifiers and room air conditioners to eligible customers. Visit www.NJCleanEnergy.com or call 866-NJ SMART for eligibility requirements.

Additionally, a $50 rebate is offered to New Jersey residents who recycle their old, working refrigerators or freezers through New Jersey’s Clean Energy Program. Customers taking advantage of the ARRA incentives on new refrigerators may also take advantage of this program.

For more information about these rebates, visit www.NJCleanEnergy.com or call 1-866-NJSMART (1-866-657-6278).

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When a home energy audit pays

GMS Editor — Fri, 15 Jan 2010 00:37:15 +0000

By Steve Hargreaves, staff writerJanuary 7, 2010: 4:46 AM ET

NEW YORK (CNNMoney.com) — The government is expected to unveil a new program in the next couple of months that if approved may reimburse homeowners for up to half the cost of making their homes more efficient, but don’t start shopping for new kitchens just yet.

Homeowners will get the most return for the money in simple upgrades like caulking the windows, putting insulation in the attic, and changing the light bulbs – not new windows, refrigerators or dishwashers.

The average American home wastes a lot of energy.

A complete energy retrofit – which could include caulking and insulation as well as new windows, appliances and boiler, could slice a home’s energy consumption in half, according to Lane Burt, manager of building energy policy at Natural Resources Defense Council.

But getting all that work done might run into the tens of thousands of dollars. And any new federal program – which is still being drafted and is not guaranteed to become law – would cap the government reimbursements at $12,000, said Burt.

Homeowners need not despair. There are some simple improvements that are relatively cheap and can pay for themselves quickly.

What to look for

Experts say there are a few things to look for when getting an energy audit and retrofit work done.

First, find a contractor licensed by the Building Performance Institute or the Residential Energy Services Network. These contractors have been trained to first test a home and see how much energy it is losing, then make renovations on all the systems in the building.

As of now there are no incentives in the proposed program for do-it-yourselfers. That’s partly because the program is designed to create jobs by putting out-of-work contractors back on the job. But it’s also done to ensure the work is done right – a house that’s sealed up too tight could rot from mold or trap too much carbon monoxide.

Second, hire an energy contractor using the same diligence you would with any other contractor. Call around for price quotes and check references. If you have any problems report them to your state’s attorney general.

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Don’t let energy costs creep you out on National Weatherization Day

GMS Editor — Fri, 30 Oct 2009 21:44:40 +0000

October 29th, 2009
Green Right Now Reports

October, like many months, is stocked with special campaigns. As almost everyone knows, it is Breast Awareness and Diabetes Awareness Month (interesting duality there as we load up kids with Halloween sweets).

Who knew that October also hosts National Weatherization Day, which is October 30? So as we prepare our haunted mansions, we might also consider those scary power bills to come after Hallows Eve.

Here are some ideas for tightening up our building “envelope” from various sources, including the Cool Cities Home Audit Checklist:

* Seal up leaks. Double duh, but have you done it? Wherever you feel air seeping in, know that heated air can waft out. Cool Cities says stop door drafts with a draft stopper, or just put down a towel. For outside window frames, caulk is your best friend.

* Remember to set your hot water heater at 120 degrees. Excessive heating of water during cool months can needlessly hike up bills, and your carbon footprint. It’s like the phantom in the attic, or basement, keeping hot water at the ready — even when you don’t need it.

* Don’t just close off the chilly attic. Seal it off with foam weatherization tape, or buy or make an attic door cover.

* Close the drapes at night; open them to let the sun in during the day.

* Check your furnace filter monthly, and check the vents to make sure you’ve got good air flow. See the EPA’s Heat and Cool Smartly Guide for more.

* Remember to close that fireplace damper after the coals after burned out. An open fireplace literally sucks the warmth from your home, and that’s just ghoulish or foolish.

And if you’re making serious improvements, remember it’s not just solar panels that qualify for federal tax breaks. Windows, insulation, new furnaces — all that — can earn you some return at tax time. See the EnergyStar website for details on federal incentives.

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Best, Green Intentions . . .

GMS Editor — Thu, 08 Oct 2009 22:09:34 +0000

By Pat Mertz Esswein
Kiplinger’s Personal Finance
Sunday, October 4, 2009

If you’re like most people, you’re more than happy to buy green — as long as it also saves greenbacks. A recent study by the Shelton Group found that people who buy eco-friendly products at least occasionally are more interested in spending their money wisely than in improving the environment.

To that end, here are 10 oft-cited green myths and the truth behind them — plus how much money you may be burning by buying into them.

Myth

Never leave the lights on when you leave a room.

Reality

Mom had it right when it comes to incandescent bulbs, but she’d be wrong about today’s compact fluorescent lights. The more often you switch CFLs on and off, the shorter their operating life. In most parts of the country, it’s cheaper to leave fluorescents on if you’ll only be out of the room for 15 minutes or less, according to the Energy Department (www.energysavers.gov). In areas with high electric rates or during peak demand periods, the length of time may shorten to 5 minutes. On average, a CFL bulb costs $2.50 more than an incandescent bulb, but it will save $5.41 annually on your electric bill compared with an incandescent, according to the Energy Department.

If you haven’t converted to CFLs because you fear pollution from the mercury they contain, keep in mind that generating electricity is the main source of U.S. mercury emissions. A 60-watt light bulb will use 480 kilowatt hours of electricity and contribute almost 6 milligrams of mercury to the environment over its lifetime, according to Energy Star. A CFL will use less than a fourth of the electricity and result in a third of the mercury emissions. For more information on properly disposing of CFLs, visit http://www.energystar.gov/cfls.

Myth

You can trust product labels that say “green,” “eco-friendly,” “earth smart” and the like.

Reality

The green-washing machine loves to crank out vague marketing terms, and the Federal Trade Commission has begun to crack down on environmental claims that fail the regulatory smell test (visit www.ftc.gov and search “Sorting Out Green Advertising Claims”). Manufacturers have begun to improve the labeling, consumer information and advice on their Web sites, including lists and definitions of ingredients. Also look for the EPA’s Design for the Environment label.

Myth

Energy savings (and tax credits) will eventually pay for replacement windows.

Reality

True, windows are a big energy waster, but you probably have bigger fish to fry. The average cost to replace a window with a high-efficiency model is $300 to $700, and another 50 to 100 percent if you must replace a rotten or damaged frame, according to http://www.CostHelper.com. Through 2010, you can get a tax credit for 30 percent of your cost, up to $1,500, for super-efficient windows (many that are currently Energy Star-approved don’t qualify). Many older homes don’t have huge amounts of window area, and newer houses tend to have more energy-efficient windows that meet existing standards for Energy Star labeling. If you still want to upgrade your windows, you may wait until products meeting new and more rigorous Energy Star standards reach the market in April 2010.