Cash Back For Going Green
Going green can be less expensive than you think when
you take into account some of the cash incentives being offered for
those who build and remodel with greener alternatives than the
conventional choices. Right now, alternative energy sources and the
equipment needed to use them are in the early adopter stages, when costs
are higher for all concerned. That's because the early adopter costs
include development and deployment costs. In order to encourage more
people to jump on the bandwagon, utility companies and governments are
offering rebates and incentives to those who are willing to be part of
the brae new world of greener resources. These are just a few of the
programs and incentives that might be out there for you.
Federal Tax Incentives
On the federal level there are a number of programs that offer
incentives for going greener in your home. Many of these are aimed at
corporate taxpayers rather than residential ones, but there are some
that offer incentives available to home owners.
Tax exclusion
Any income from rebates for energy efficient conversions is excluded
from taxable income. If, for instance, you receive a $300 rebate from
your gas company because you installed a new tankless water heater, you
do not need to count that $300 into your taxable income. (Exclusions
reduce the income on which you are taxed.)
Tax Credit for Energy Improvements
You can get up to $500 tax credit for making energy efficient
improvements to your home, including repairs and remodels. The credit
amount is determined as 10% of the cost of building envelope
improvements and/or 10% of the cost of more efficient equipment,
including water heaters, furnaces, windows, doors, roofs, air
conditioners, circulating fans, building insulation, heating pumps and
circulating fans. (Credits are deducted from the amount of tax you owe.)
Tax Credit for Solar Energy Installations
You can get a tax credit equal to 30% of the cost of solar energy
installations, including solar water heat, photovoltaic systems and
solar fuel cells, up to a total tax credit of $2,000 for electric and
solar water heating, and up to $500 per .5 kW for fuel cells. The credit
can be carried forth to succeeding years. This one expires at the end of
2008.
In addition, there are incentives for residential builders for meeting
conservation goals that can return $1,000 to $2,000 in rebates for each
residence built that meets specific guidelines.
State Tax Credit
Since 1997, Florida has exempted renewable energy systems from state
sales and use tax. Renewable energy systems include any system that uses
solar, wind or other renewable energy sources instead of more
conventional power sources like electricity, gas or oil. The products or
systems that you can get a tax rebate or credit for include alternative
energy cars, solar space heaters, solar water heaters, solar pool
heaters, photovoltaic systems, refueling systems, ethanol and biodiesel.
If you refit your car to use an alternative to conventional gas or
diesel, you can get a return of any tax that you paid on it. The same
goes for replacing your conventional pool heater with a solar pool
heater, or installing a tankless solar water heater.
State Rebate Program
In addition to the tax rebate, you may also be eligible for a Florida
rebate program if you install a solar hot water heater, solar pool
heater or photovoltaic electricity cells before June 20, 2010. The
rebates include $500 for solar water heaters, $100 for solar pool
heaters and a pro-rated amount for photovoltaic (PV) systems with a
maximum amount of $20,000 for residential installations and $100,000 for
non-residential installations. The amount is dependent on the wattage
rating of the system.
You can get more information about Florida state rebate and incentive
programs at the Florida Department of Environmental Protection web site.
Utilities Pitch In with Rebates
In nearly every area of the country, the major utilities offer some sort
of rebate or other incentive to encourage their customers to move toward
greener equipment. Here in the Tampa area both Tampa Electric and
People's Gas offer rebates when you replace your existing equipment with
more energy efficient equipment in your home.
Tampa Electric offers rebates when you replace your heat pump with one
that works more efficiently. The rebates range from $100 to $250. In
addition, because a great deal of energy is lost when air seeps out of
leaky ducts or broken seals, Tampa Electric offers home ductwork
inspections for $79. The flat rate includes any repairs and the
installation of one flexible duct up to 25 feet in length. In addition,
they'll pay you up to $100 when you install ceiling insulation. All of
these are recommended measures for reaching maximum energy efficiency in
your home. Finally, if you're building a new home, you may qualify for
even more rebates and incentives.
Find out more about Tampa Electric rebates at their Energy Plus website
page.
People's Gas also offers rebates and incentives to customers who upgrade
their current equipment to more efficient versions. The rebates are
available when you replace your current water heater, heating system,
cooling system, cooking appliances, clothes dryer and space heaters with
more energy efficient gas appliances. The rebate amount varies according
to the appliance or system, and whether your convert from electricity or
upgrade from an existing gas appliance. In addition, People's Gas also
offers rebates to builders doing new construction, which can lower the
cost of your home if you're building new.
Learn more about residential rebates at People's Gas website, on the
Residential Conservation Page. Learn more about builder rebates at
People's Gas website, Builder Conservation Page.
Most other utility companies throughout the country offer similar
incentive programs. Check with your electric and gas providers to find
out what rebates are available to help you with the expenses of going
greener.
About the author
Calum MacKenzie is REALTOR focusing on Tampa real estate, New Tampa real estate and Wesley Chapel real estate.