Christian Real Estate Blog

Energy law could bring Homeowners Tax Relief

Energy law could bring taxpayers relief-Homeowners can reap benefits of new measure that offers incentives for energy-efficient homes.: "If the thought of rising energy bills has you rushing out to buy insulation, hold off until after Jan. 1, when the recently enacted Energy Tax Incentives Act of 2005 kicks in.

The act includes incentives to make your home more energy efficient and give solar a try. They come in the form of tax credits, reducing federal tax bills dollar for dollar. Unlike many federal programs, they are not phased out for higher incomes.

The most generous credits are available for those who add solar water, heat or power to their homes. It wasn't very long ago that installing virtually any kind of solar device was a labor of love without much economic value. But with the federal incentives -- combined in many places with utility and state incentives -- solar is looking like a much better deal.

The new energy law encourages taxpayers to claim a tax credit each year in 2006 and 2007 for these expenses: 30 percent of the cost of solar water-heating equipment, up to a $2,000 maximum tax credit for each tax year; 30 percent of the cost of solar equipment that generates photovoltaic electricity, up to a $2,000 maximum tax credit for each tax year, and 30 percent of the cost of a fuel-cell power plant, up to a $500 maximum tax credit for installation in a taxpayer's principal residence."

posted by Justin Smith @ 12/16/2005 08:11:00 AM